Looks like I closed this bad boy at the right time!
I never really had plans to hold on to this trade into the weekend because that would expose me to unnecessary risk, and that’s just not my style.
So when the pair began stalling at around .8530 and formed a pinbar, I took this as my cue to close up shop for the week. And boy was it the right decision!
Soon after I closed my trade, EUR/GBP staged a strong rally and ended up right in the area of my entry. If I had decided to keep my trade open, I would’ve ended up being stopped out at break even.
Luckily, I was able to react to the signs the market was giving me and instead ended with a small profit.
Closed trade manually at .8523: +57 pips / +0.356%
I know it ain’t exactly the biggest win, but it’s better than nothing, right? Besides, I’m happy just to string together two wins in a row for the first time this year. Hopefully, the streak will continue!
Thanks for following, guys! Here’s to catching more winners together!
Trade Idea: 2013-04-17 02:17
As far as technical analysis goes, all signs point to sell on this bad boy! Check it out yo!
We’ve got a major confluence zone at the .8600 handle:
- It’s a major psychological level.
- It’s a proven area of interest (former support and resistance).
- It lines up perfectly with my favorite Fib level – the 50% Fib.
- It’s just a few pips below the top WATR.
Best of all, we already have a bearish divergence in the works!
Fundamentally, it’s hard to pinpoint exactly why the euro has been so resilient as of late, which makes me think that its rise may be overdone. Recent reports haven’t exactly inspired confidence in the region, so I don’t see why the euro should stage an extended rally.As for the U.K., we have claimant count data and MPC meeting minutes set to come out later in the London session. Between the two, methinks the minutes could hold more weight since the markets would like to know whether or not the BOE is moving closer to increasing its stimulus program.
The BOE doesn’t seem like it’s in a hurry to increase rates, especially since inflation was unchanged last month, so there’s a chance the minutes could turn out to be bullish for the pound.
In any case, here’s how I set up my trade:
Sold EUR/GBP at market (.8580), stop loss at .8660, profit target at .8420.
I placed my stop above the 61.8% Fib and my profit target at the previous low for a solid 2:1 return on risk. With the 0.50% that I’m putting on the line, this should give me 1.00% if everything turns out as planned.
So what do y’all think of my trade idea? I’d love to hear what’s on your mind. Share your thoughts below, homies!
This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.