Close Trade: 2008-08-08 11:55
I have managed to make back much of the earlier loss, and with the end of the Euro/US trading session at hand, I have decided to close my trade and chill out for the weekend.
Close at market (1.9195)
Total: +95 pips/ +0.63% gain
Stop and Reverse: 2008-08-07 23:26
It looks like 1.94 stood no chance as Cable blasted through support on continued US Dollar strength. Looks like I’m going to have to change my position as the momentum looks to carry the Greenback further.
Close open trade at market (1.9290).
Total: -120 pips/ -0.80% loss
I will short GBP/USD at market (1.9290), stop at 1.9440, pt1 at 1.9140, pt2 at 1.9015
So, I’m taking a small hit and going to ride the train further to possibly 1.9000. Good luck and stay tuned!
Trade Idea: 2008-08-07 17:47
Got a technical play coming up on Cable as it approaches a significant support level. It’s bounced a few times before, will it bounce again?
This is a basic chart play as the pair approaches 1.94, where it has found support and bounce higher. Stochastics are indicating oversold conditions on the daily.
Fundamentally, the Sterling has fallen on the UK’s weakening housing market and as the US Dollar strengthens on falling commodity prices. Will commodities fall continue to strengthen the Greenback? Are the UK’s economic worries just beginning to get priced into the pair? We’ll just have to wait and see, but for now I am going to play the support level as such, but be ready to reverse if the pair breaks. Here it goes:
Long GBP/USD at 1.9410, stop at 1.9260, pt1 at 1.9550, pt2 at 1.9700
Remember to never risk more than 1% of your account on any single trade. Adjust position sizes accordingly.
No major news events in the line up for the last trading day of the week, but always be ready for surprise news. Stay tuned, good luck and good trading!