Pick of the Day: GBP/USD – Close Open Orders

Close Open Orders: 2008-01-09 11:28

As I commented below, Cable sold off as soon as the European trading session opened. The rally to the top of the consolidation range didn’t materialize; instead the pair broke below previous lows around 1.9660 all the way down to its current trading area around 1.9550.

Close open orders to short GBP/USD at 1.9825

So, we were right in the direction, but just a bit too conservative on our entry.

We have UK and ECB interest rate statements tomorrow, so I’ll have a trade idea tonight for how Asia and Europe may play the currencies before the statement. Stay tuned!

Trade Idea: 2008-01-09 00:09

PoD Chart

We have a light economic calendar for today’s trading session, and with the Bank of England’s interest rate decision coming up in a couple of days, today’s trading session looks like a good opportunity for a range play.

As we can see on the chart, Cable has been consolidating this week for the reasons mentioned above and will probably continue until Thursday’s rate decision. I like a short at the 38% Fibonacci area as we saw resistance and reversal a day earlier.

A short also plays into the sentiment that Cable’s rally has been a bit overdone and we are in a corrective phase at the moment. So, we will sell short and possibly convert this trade from a short term trade to a longer one if the downtrend resumes.

Short GBP/USD at 1.9825, stop at 1.9880, pt1 at 1.9760, pt2 at 1.7655

Remember never to risk more than 1% of your account on any single trade. Adjust position sizes accordingly.

Good luck!

  • Cloudthers

    nice prediction…its already done! ^^

  • gulraiz

    very nice prediction and i dont beleive.
    Very good job.
    How i contact you i need to talk.

  • hypnos63

    hi pip crawler,i am a little confused here. you posted this pick 0009am 09/jan 2008 right? but by the metatrader 4 4hr chart, GBP/USD hit 1.9825 at 2008.01.08 0800 (MT4 time),that would be 0700 GMT or 0200am EST jan 8 which was already past by the time you made your post. are you saying that GBP/USD will reach 1.9825 again and we should then enter the trade as you suggest. please reply soon. hypnos63@yahoo.com

  • Pipcrawler

    Yes, if the pair rallied back up to 1.9825, I would have shorted at the top of the consolidation range… but it looks like Cable just sold off right from the beginning of the European trading session….No trade.

  • Cloudthers

    nice prediction…its already done! ^^

  • gulraiz

    very nice prediction and i dont beleive.
    Very good job.
    How i contact you i need to talk.

  • hypnos63

    hi pip crawler,i am a little confused here. you posted this pick 0009am 09/jan 2008 right? but by the metatrader 4 4hr chart, GBP/USD hit 1.9825 at 2008.01.08 0800 (MT4 time),that would be 0700 GMT or 0200am EST jan 8 which was already past by the time you made your post. are you saying that GBP/USD will reach 1.9825 again and we should then enter the trade as you suggest. please reply soon. hypnos63@yahoo.com

  • Pipcrawler

    Yes, if the pair rallied back up to 1.9825, I would have shorted at the top of the consolidation range… but it looks like Cable just sold off right from the beginning of the European trading session….No trade.