Trade Closed: 2013-07-02 01:20
Drats! Talk about letting a winner slip through your fingers! I thought this baby was a sure win, but once again, the forex markets taught me that you shouldn’t count your chickens before they’re hatched – anything’s possible when it comes to forex!
After the Bank of England unloaded its dovish financial stability report, the British pound came crashing down, lifting EUR/GBP back up to the top of its long-term range.
In doing so, it triggered my stop loss, which I had adjusted to my entry point at .8580.
Stopped out at .8580: +0 pips / +0.0%.
Looking back, I realize that I should’ve made more adjustments to my trade. For instance, I could’ve exited with a decent profit when price was stalling at around .8480, which was a former support area. But my confidence (and a bit of greed, I admit), got the better of me and I decided to keep the trade open in hopes that it would hit the major support level at .8420.
I wanted to cap off the quarter with a solid win, but I guess that just wasn’t in the cards for me.
I obviously need to take some time to assess my performance this quarter and figure out what I did wrong and what I could’ve done better… which is why I’m posting my end-of-quarter trading performance review later this week! Stay tuned for that, homies!
Trade Update: 2013-06-19 02:01
Finally! After waiting it out a couple of days, I finally got triggered on my EUR/GBP trade!
The euro got a nice boost up the charts yesterday thanks to a slight improvement in the ZEW economic sentiment reports. Both the euro zone and German editions beat initial forecasts, which means that investors are now slightly more confident about the state of the euro zone economy.
The question is now, will resistance around .8580 hold?
Looking ahead, the biggest data coming out today will be the MPC meeting minutes. Take note that the last MPC statement was a major dud and we didn’t get much excitement. That said, I don’t anticipate there to be any major surprises at today’s release.
Aside from that, we’ve got the FOMC statement coming out during the New York session. Normally this causes a ton of volatility, but since I’m trading a cross-currency pair, I don’t expect the volatility to spill over too much. I think my trade should be safe to hold going into the statement.
Good luck to those of you who joined me on this trade! Hit me up on Twitter, Facebook, or the comments section below so we can start a discussion on how to manage this trade!
Trade Idea: 2013-06-13 04:28
Don’t look now, but EUR/GBP is fast approaching a key selling area!
I’m talking about the .8600 zone, homies! Zoom out into the higher time frames and you’ll see exactly what I’m talking about. EUR/GBP has formed a clean range over the past three months and the .8600 handle has managed to keep price in check the entire time.
I’m betting that it’ll continue acting as resistance, so I’ve set up my orders this way:
Sell EUR/GBP at .8580, stop loss at .8640, profit target at .8420.
I set my entry just below the .8600 handle in case the pair turns shy and reverses right below the major psychological handle. As for my profit target, I’m hoping price will retest the range’s support.
You may be wondering why I expect the range to hold. Well, now that we’re in the summer months, I feel that volatility will die down and we’ll see more range plays materialize. Aside from that, I don’t really see any major changes in the market environment that should lead the euro to gain substantially against the pound. Sure, given the current market themes, I can see it rising against the dollar and the yen… but against the pound? Not really!
So that’s my trade for the week. I’m hoping I can catch a few pips with this trade setup. How do you guys feel about it? I’d really like to pick your brains. Share your thoughts and suggestions below, friends!
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