Pick of the Day: GBP/USD - Trade Update
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
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!
