Trade Close: 2008-02-25 09:12
Our trade closed on Friday as GBP/CHF retraced and gave back most of the rally it saw after UK Retail Sales. The pair dropped back to 2.14, our adjusted stop, after almost reaching 2.16.
1st half: +200 pips
2nd half: +100 pips
2.13 still looks like a great support level for the pair, so we will keep an eye on that if the pair makes another test of that level. I hope everyone did well on this trade. Until next time!
Stop Adjustment: 2008-02-21 08:00
Our trade hit our first profit target on the back of the positive UK retail sales and revisions. We have closed out half of our position and we will now adjust our stop on the remaining position to lock in further profits.
Adjust stop to 2.14 on remaining position to lock in 100 pips on remaining positions.
It looks like the rally has lost steam just under 2.16 and will probably range between 2.15 and 2.16 as we approach the end of the week. Stay tuned and good luck!
Trade Update: 2008-02-20 08:18
As expected, GBP/CHF found a bid at 2.13 and rallied higher to just below 2.14, triggering our long orders along the way.
Our trade was triggered at the open of the European trading session and currently trading in a sideways pattern around 2.1360.
We have US data coming up pretty soon, which may shake up the currency markets for a sec, but our trade looks good to hold onto for now. Stay tuned for trade adjustments…..good luck!
Trade Idea: 2008-02-19 18:57
We caught the move down in GBP/CHF and now it looks like it’s time to catch the move up as it looks like the pair has found buyers once again at previously tested support area of 2.1250.
As we can see on the chart, the pair has bounce higher from 2.1250 several times before, so it looks good that we may see buyers once again. I have also pointed out regular bullish divergence possibly forming as prices make a lower low while the stochastic indicator makes a higher low. It looks like downward momentum may have lost some steam.
Fundamentally, the pair has moved lower on concerns of downside risk to growth and credit worries in the UK. This is all speculation at the moment as UK data still remains positive, so I think we will see ranging behavior play out until there is confirmation one way or another.
We will long at the bottom of the range, and target near the top at 2.17.
Long GBP/CHF at 2.1300, stop at 2.1100, pt1 at 2.1500, pt2 at 2.1700
With a wide 200 pip stop, please be sure to adjust position sizes to stay within risk comfort level. Never risk more than 1% of you account on any single trade.
Stay tuned and good luck!
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