Not too long after my post, EUR/GBP tested .8350 again and found enough buyers to push the pair all the way to .8500. It looks like that was the top as sellers pushed the pair all the way back down to .8400 this morning.
With the end of the Euro session and week, coming up I’d like to close out the trade to avoid weekend even risk.
Close trade at market (.8395).
Total: +45 pips/ +0.26% gain
Pretty frustrating to watch a 150 pip gain turn into a 45 gain, but a gain is a gain, right? I should have expected resistance at .8500 as it is a psychological level, so a lesson learned for future trades.
Thanks for checking out my blog, have a great weekend and I’ll see ya next week!
Trade Idea: 2008-11-19 15:04
It’s usually more fun to watch paint dry rather than watch EUR/GBP, but it seems the credit crisis has brought some life to this pair – and some nice trading opportunities.
There may be a swing trade opportunity in the works as the pair continues to retrace as much as 50% of the very volatile move from around .8150 to .8650. Stochastics are creeping higher indicating the move lower may be a bit overdone. Time to return to the uptrend?Fundamentally, it’s still the same old story as we continue to see global weakness and possibly more interest rate cuts from both the ECB and the MPC. It’s speculated that the UK will get hit the worst and with more room to cut in interest rates, we may see further declines in the Sterling against the Euro.
I’m looking to go long the pair, but I’m going to see if we get a bit more pullback to .8350
Long EUR/GBP at .8350, stop at .8180, pt1 at .8520, pt1 at .8690
Remember to never risk more than 1% of a trading account on any single trade. Adjust position sizes accordingly.
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