Close Open Orders: 2008-03-04 15:33
Barely any action in Cable today as the pair traded in 60 pip range through out the major trading sessions. Our orders to go long at 1.9770 were not triggered and with the end of the US trading session approaching, I am going to close out my open orders to buy GBP/USD at 1.9770 and look for the next trading opportunity. Stay tuned!
Trade Idea: 2008-03-04 00:23
Cable found support last week once again after testing 1.94 and made its way to 1.9950 where it found resistance and retraced. This pullback may be an opportunity to ride Cable higher as we see a hidden bullish divergence signal on the 4 hour chart.
As we can see on the chart, the pair is making higher lows in price and lower lows on the stochastic indicator. This is a hidden bullish divergence signal, but I would like to see a retracement back to recent support around 1.9770 before entering long. This trade also coincides with the short term trend higher, giving us better chances of the pairing going higher.
There are no major event risks in the next 24 hours, so technicals should play out. Weak Dollar sentiment and potential US rate cuts at the next Fed meeting this month are still in the sights of traders, so we will continue to play the Greenback that way.
Long GBP/USD at 1.9770, stop at 1.9690, pt1 at 1.9850, pt2 at 1.9930
Remember to never risk more than 1% of your account on any single trade. Adjust position sizes accordingly.
Good luck and good trading!