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

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

PoD Chart

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!

  • mscaramel

    For a short term trade look at potential reversal between 1.9874 and 1.9888. Over the past few days price has been hitting surpassing 50% fib retracement line and hitting 61.8 retracement line when a short term reversal occurs

  • mscaramel

    The short term reversal has been occuring back to 23.6 retracemetnt line around 1.9840 even low to 1.9825. but safe retracement back to 1.9840. I personally have profitted over past few dys performing trades based off breach of 61.8 retracement down to 23.6 retracement

  • NEWMAN07

    Mscaramel , could you pls teach me how to use FIB , i am new and i dont know how to apply it ,,,, thanks

  • mscaramel

    For a short term trade look at potential reversal between 1.9874 and 1.9888. Over the past few days price has been hitting surpassing 50% fib retracement line and hitting 61.8 retracement line when a short term reversal occurs

  • mscaramel

    The short term reversal has been occuring back to 23.6 retracemetnt line around 1.9840 even low to 1.9825. but safe retracement back to 1.9840. I personally have profitted over past few dys performing trades based off breach of 61.8 retracement down to 23.6 retracement

  • NEWMAN07

    Mscaramel , could you pls teach me how to use FIB , i am new and i dont know how to apply it ,,,, thanks

  • mscaramel

    Hey Newman07. If it helps right here at the Babypip site under School for the third grade they do a great job at explaining FIB. Hopefully that helps you.

  • mscaramel

    Hey Newman07. If it helps right here at the Babypip site under School for the third grade they do a great job at explaining FIB. Hopefully that helps you.