Close Trade: 2008-02-26 08:43
Regardless of weak UK economic data, Cable rallied high on a broad based USD sell off and hawkish inflation comments from Bank of England officials. Further, buying support is evident even after a surprisingly strong US PPI number. With Consumer Confidence coming up, most likely to disappoint, I am going to close my trade at market to avoid further risk.
Close trade at market (1.9735).
Total: -70 pips
Trade Idea: 2008-02-25 19:40
For tonight’s “Pick,” we’re going to take a nice chart setup on Cable as the pair seems to have found resistance just under 1.9700.
On the chart, we can see resistance at the downward sloping trendline and stochastics are trending lower out from overbought territory.
Short GBP/USD at market (1.9665), stop at 1.9765, pt1 at 1.9565, pt2 at 1.9375
Remember to never risk more than 1% of your account on any single trade. Adjust position sizes accordingly.
We do have economic data coming out in the UK during the Euro session and US data (most notably PPI) coming out during the US session, so we may see a bit of volatility in the upcoming trading sessions.
Stay tuned for updates…good luck and good trading!