Pick of the Day: GBP/USD – Trade Closed

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

PoD Chart

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!

  • Babysteps

    I took a position, first time go short

  • DBUILDER

    i want to ask u a question?do u trade the news and if yes how do u go about the news trade cos i am new to this forum

  • Babysteps

    I took a position, first time go short

  • DBUILDER

    i want to ask u a question?do u trade the news and if yes how do u go about the news trade cos i am new to this forum

  • Babysteps

    I open 2 lots short @1.9700
    SL 1.9760 TP 1.9600
    First one hit SL not sure close other lot or keep it
    I was almost sure depends on ur post and anaylsis but….!

  • Pipcrawler

    Hey DBuilder… I usually do not trade the news, but I am aware of what’s coming out. Hey Babysteps…I can’t tell you what to do, this blog is meant to express my views and thoughts for educational purposes and demo practicing only. I hope it helps you form your own views and opinions of the markets. And obviously it has as you have chosen different exit points. If your strategy signaled your stop at 1.9760, then just take it and move on, and hopefully you have sound money management systems in place. I never risk more than 0.50% – 1% of my account on any single trade, and as a beginner neither should you. I hope this helps.

  • enochbenjamin

    DBuilder – if ST is hit you should be flat (out of the trade) reflecting and preparing for the next opportunity. Preserve capital at all costs.

    “The elements of good trading are: (1) cutting losses, (2) cutting losses, and (3) cutting losses. If you can follow these three rules, you may have a chance.”

    — Ed Seykota

  • Babysteps

    I open 2 lots short @1.9700
    SL 1.9760 TP 1.9600
    First one hit SL not sure close other lot or keep it
    I was almost sure depends on ur post and anaylsis but….!

  • Pipcrawler

    Hey DBuilder… I usually do not trade the news, but I am aware of what’s coming out. Hey Babysteps…I can’t tell you what to do, this blog is meant to express my views and thoughts for educational purposes and demo practicing only. I hope it helps you form your own views and opinions of the markets. And obviously it has as you have chosen different exit points. If your strategy signaled your stop at 1.9760, then just take it and move on, and hopefully you have sound money management systems in place. I never risk more than 0.50% – 1% of my account on any single trade, and as a beginner neither should you. I hope this helps.

  • enochbenjamin

    DBuilder – if ST is hit you should be flat (out of the trade) reflecting and preparing for the next opportunity. Preserve capital at all costs.

    “The elements of good trading are: (1) cutting losses, (2) cutting losses, and (3) cutting losses. If you can follow these three rules, you may have a chance.”

    — Ed Seykota

  • DBUILDER

    thanks for the advise and i will try all this in a demo account

  • DBUILDER

    thanks for the advise and i will try all this in a demo account

  • avedis1

    Pipcrawler,
    This was a tought one. News interfered and there was nothing you could do. Thanks for the trade idea. Thanks for the heads-up. Avi

  • avedis1

    Pipcrawler,
    This was a tought one. News interfered and there was nothing you could do. Thanks for the trade idea. Thanks for the heads-up. Avi

  • clipmax

    Hallo pipcrawler, I hold on up to 1.9848, so was able to go out with a small 5 pips profit on today’s greenback retracement. I agree with your point of wiew and think sellers are still in control, so there will be some other good opportunity to go short next week.
    Have a great weekend

  • clipmax

    Hallo pipcrawler, I hold on up to 1.9848, so was able to go out with a small 5 pips profit on today’s greenback retracement. I agree with your point of wiew and think sellers are still in control, so there will be some other good opportunity to go short next week.
    Have a great weekend

  • Pipcrawler

    Thanks for the comments guys! It was tough, but gonna move on! Have a great weekend!

  • Pipcrawler

    Thanks for the comments guys! It was tough, but gonna move on! Have a great weekend!

  • XRumerTest

    Hello. And Bye.

  • XRumerTest

    Hello. And Bye.