Pick of the Day: GBP/USD – Trade Closed

Trade Closed: 2008-09-19 09:47

A nice end to the week as my long entry orders were triggered and full profit was attained as risk appetites grew after US Government put together plans to halt the credit-market freeze.

1st Half: +100 pips
2nd Half: +250 pips
Total: +1.75% gain

Man, it has been a wild week. We’re witnessing unprecedented times and I’ve never seen so much volatility – hopefully it will continue for a little bit longer. TGIF and I wish everyone a great weekend!

BabyPips.com GBP/USD Forums
Don’t forget to check out Forex news at Freshpips.com!!

Trade Idea: 2008-09-18 01:00

PoD Chart

Good day mates! Got a little short term trend forming on Cable as the Dollar continues to sell off across the board. Are we seeing a new trend forming to the upside?

Another simple chart today as we take a look at the 60 minute chart on GBP/USD. The pair is clearly making its way higher as housing numbers disappoint today and traders seem unimpressed with the US government bailout of AIG. It looks like fears of further US financial troubles are on the minds of traders, making the US Dollar less desirable in the short term.

So, I like a short term long on Cable, but I think I’ll wait for a pull back to the 50% Fibonacci retracement area. It may take a little bit to get there, but the wait might be worth it. Here’s what I’d like to do:

Long GBP/USD at 1.8000, stop at 1.7900, pt1 at 1.8100, pt2 at 1.8250

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

We do have economic data on the calendar coming out for the UK and the US tomorrow. This may spark off enough volatility to bring the pair down lower to my entry level. Stay tuned and good luck!

BabyPips.com GBP/USD Forums
Don’t forget to check out Forex news at Freshpips.com!!

  • Babysteps

    Hello PIP,
    Looks nice chance,I’m in:-)
    Please take a look at USDX and tell me what u think.
    I see droping in usdx started few days ago and i think will drop more next week. what u think long@eur/usd

    link to global-view.com

  • Babysteps

    Let’s see If USDX going to drop from 78.77:-)

  • Babysteps

    Hello PIP,
    Looks nice chance,I’m in:-)
    Please take a look at USDX and tell me what u think.
    I see droping in usdx started few days ago and i think will drop more next week. what u think long@eur/usd

    link to global-view.com

  • Babysteps

    Let’s see If USDX going to drop from 78.77:-)

  • afish999

    good call pip, it was so close to getting stopped out!

  • Pipcrawler

    Thanks for the comments everyone! Yeah, it was close, but apparently the US Government stepped in to save my trade as well. Haha! Have a great weekend everyone!

  • hutchicj

    Great pick Pipcrawler. Well done. Look forward to more of your posts.

  • afish999

    good call pip, it was so close to getting stopped out!

  • Pipcrawler

    Thanks for the comments everyone! Yeah, it was close, but apparently the US Government stepped in to save my trade as well. Haha! Have a great weekend everyone!

  • hutchicj

    Great pick Pipcrawler. Well done. Look forward to more of your posts.