Pick of the Day: GBP/USD – Trade Closed

Trade Closed: 2008-05-12 09:00

We held our short position over the weekend, and it looks like we came close to our second profit target, but as the European trading session open, Cable caught fire higher on strong UK PPI data.

The pair rallied up to our adjust stop at 1.9550 and closed out our trade.

1st Half: +80 pips
2nd Half: +50 pips
Total: +0.81% gain

Trade Update: 2008-05-09 10:23

Our short position was triggered and just before the open of the European trading session this morning, our first profit target was hit as Cable picked up momentum going lower and hitting 1.9520 along the way. Time for some trade adjustments.

Half position closed. Adjust stop on remaining position to 1.9550 to lock in +50 pips. If we hit our second profit target at 1.9440, then we will adjust our stop to 1.9480 and go for 1.9400.

It’s the end of the week, so I may just end up closing our position out depending on price action today. Stay tuned and have a great weekend!

Trade Idea: 2008-05-07 21:54

PoD Chart

Greetings! Tonight, I’m looking at jumping into Cable as the pair trends lower on US Dollar strength and UK data weakness.

Consumer confidence in the UK declined as well as Services PMI, which gave a push on Cable lower as traders begin to think that the MPC may cut interest rates tomorrow. Sentiment has been on a stronger US Dollar versus the British Pound, so we will play that sentiment this evening.

On the chart, we can see the pair breaking previous support at 1.96 and hitting lows just above 1.95. If the pair retraces higher, this may give us a good opportunity to play the current trend lower by jumping in at the 38% Fibonacci retracement level at 1.9600.

Short GBP/USD at 1.9600, stop at 1.9680, pt1 at 1.9520, pt2 at 1.9440

Remember to never risk more than 1% of your account on any single trade. Adjust position sizes accordingly.

Stay tuned for possible quick adjustments after the interest rate statement tomorrow. Good luck and good trading!

  • demontez

    hello pip,
    The interest rate result has come out not good as B.o.E have kept it a 5% which does not look attractive to sell Gbp/USD to this levels. I am in on the trade but do you see this targets meet. i would have expected b.o.E to cut interest rate which the bad economic data in the UK. what are your views???

  • demontez

    hello pip,
    The interest rate result has come out not good as B.o.E have kept it a 5% which does not look attractive to sell Gbp/USD to this levels. I am in on the trade but do you see this targets meet. i would have expected b.o.E to cut interest rate which the bad economic data in the UK. what are your views???

  • Pipcrawler

    That number was expected and that was baked in before hand. Traders taking small profits now. I’m going to hold on to this trade for now…thanks!

  • Pipcrawler

    That number was expected and that was baked in before hand. Traders taking small profits now. I’m going to hold on to this trade for now…thanks!

  • prambors

    great job

  • prambors

    great job

  • demontez

    Hello pip,
    Spot on, the two position filled. Keep the blogs coming. keep up the good work, mate.
    Thanks

  • Pipcrawler

    Thanks for the comments guys! :)

  • demontez

    Hello pip,
    Spot on, the two position filled. Keep the blogs coming. keep up the good work, mate.
    Thanks

  • Pipcrawler

    Thanks for the comments guys! :)