Trade Closed: 2008-04-10 09:12
Doh! Looks like sellers made an attempt to push Cable lower during the Asian trading session, but buyers came with force as soon as European markets taking Cable above 1.9800.
Total: -100 pips/ -1.0% Loss
So, it still looks like a battle around 1.9800 for a bit. The MPC cut interest rates in the UK to 5% as expected. Now that we have interest rates out of the way will currency traders get back to US Dollar selling? We’ll just have to wait and see….
Trade Update: 2008-04-09 13:56
Our trade was triggered after a strong UK Industrial Production number this morning. 1.9700 did hold off buyers initially, but the pair rallied higher back to the support/resistance level broken earlier.
I still like a short on this pair as we may see further economic weakness in the UK and on an possible US Dollar rally in the short term as the Greenback appears to be oversold for now. We will just have to wait and watch the buyers and sellers battle it out around 1.9850 – 1.9860, and see which direction the market takes us.
On a side note, I like a EUR/USD short at these levels, so I may throw up another trade idea tonight if we’re still hanging out in Cable. Stay tuned!
Trade Idea: 2008-04-09 00:16
Hello fellow BabyPipsters! We saw Cable drop, and break a support level, on rate cut expectations and now bad housing data….will it continue?
I highlighted the support area broken, which we played earlier last week, and now may be the time we play it as a resistance area. With the UK interest rate still looming ahead, I think we will see a continued down trend now that support is broken, but I’d like to play at a better price. Hopefully, we can see a bit of retracement on the most recent move and short at the round number.
Short GBP/USD at 1.9700, stop at 1.9800, pt1 at 1.9600, pt2 at 1.9500
Remember to never risk more than 1% of your account on any single trade. Adjust position sizes accordingly.
We do have UK Industrial Production data coming up during the European trading session. This may provide the volatility we need to hit our entry orders. Please be aware and cautious during this event. Good luck and good trading!