Partner Center Find a Broker

Close Open Orders: 2008-01-09 11:28

As I commented below, Cable sold off as soon as the European trading session opened. The rally to the top of the consolidation range didn’t materialize; instead the pair broke below previous lows around 1.9660 all the way down to its current trading area around 1.9550.

Close open orders to short GBP/USD at 1.9825

So, we were right in the direction, but just a bit too conservative on our entry.

We have UK and ECB interest rate statements tomorrow, so I’ll have a trade idea tonight for how Asia and Europe may play the currencies before the statement. Stay tuned!

Trade Idea: 2008-01-09 00:09

PoD Chart

We have a light economic calendar for today’s trading session, and with the Bank of England’s interest rate decision coming up in a couple of days, today’s trading session looks like a good opportunity for a range play.

As we can see on the chart, Cable has been consolidating this week for the reasons mentioned above and will probably continue until Thursday’s rate decision. I like a short at the 38% Fibonacci area as we saw resistance and reversal a day earlier.

A short also plays into the sentiment that Cable’s rally has been a bit overdone and we are in a corrective phase at the moment. So, we will sell short and possibly convert this trade from a short term trade to a longer one if the downtrend resumes.

Short GBP/USD at 1.9825, stop at 1.9880, pt1 at 1.9760, pt2 at 1.7655

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

Good luck!

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.