Close Open Orders: 2008-04-29 10:48
Cable fell during the morning European trading session on weak UK data, most notably the UK CBI trade data and mortgage data.
Unfortunately, we didn’t get a rise higher to catch a better price on our short position, so we missed out on the move lower. Since we missed it and the as the end of the Euro/US session overlap ending soon I will close all open orders to short GBP/USD. No trade.
Trade Idea: 2008-04-28 20:41
Hello! Tonight, we have a potential short trade on Cable as the pair continues to move lower.
On the chart, we can see the pair approach the trendline drawn from the high around 2.04, hit back around March, to the peaks recently hit around 2.02. It has found resistance there twice before, so there is a good chance we may see a response if the market trades near the trendline once again. Stochastics are showing the pair may be overbought in the short term as well.
We do have event risk tomorrow with the data out of the UK and comments from BOE Gervernor King. Out of the US, we have consumer confidence data, expected to be lower once again. With a potential of higher volatility, I look to short near the psychologically significant level of 2.0000, if the pair reaches that high.
Short GBP/USD at 2.0000, stop at 2.0100, pt1 at 1.9900, pt2 at 1.9700
Remember to never risk more than 1% of your account on any single trade. Adjust position sizes accordingly.
Stay tuned…good luck and good trading!