Partner Center Find a Broker

Trade Closed: 2009-09-23 10:57

PoD Chart

My short term trade produced a few pips as 1.6400 held back GBPUSD bulls throughout the Asia session. My first profit target was hit at 1.6350 ahead of the Bank of England meeting minutes release. Half my position closed, and the stop on my remaining position was adjusted to break even.

The release of the meeting minutes showed the MPC opted to keep interest rates at 0.5% and a unanimous vote for no change to the debt-buying plan. It was missing the “dovish” tone traders were expecting, thus propping up the British Pound soon after the statement. GBPUSD rallied within minutes to 1.6450, and stopping me out along the way.

1st Half: +50 pips
2nd Half: +00 pips
Total: +0.50% gain

So, a nice small gain to offset the hit I took in EURUSD. Not a great day, but not terrible either.

Gonna sit back an relax for now to wait and see what the FOMC has in store for the markets today. Today’s statement is highly anticipated as it may have a major affect on the markets if we see tightening of interest rates or a plan to pull out cash of the financial system. Both are outcomes are unlikely, but remember, anything can happen! Be safe and good luck.

Trade Idea: 2009-09-22 11:02

PoD Chart

Hello Hello! While I have my longer term EURUSD short working, I see a nice technical play forming on GBPUSD. Cable has been on a short term down trend since topping out around 1.67…is the current retracement another opportunity to short?

I have the one hour chart up and we can see the usual setup using Fibonacci and a simple horizontal line. First, we can see previous minor resistance at 1.6400 that was broken. Could it now be a point of resistance? Also, I used the Fibonacci tool to find potential resistance points, and we can see that the 61% Fib area lines up with that broken minor support. Stochastics are overbought on the one hour chart, but not quite there on the 4-hour. Given this I will wait to see if GBPUSD hits 1.6400 before putting on the bulk of my position. Here’s what I am going to do:

Short GBPUSD at 1.6400, stop at 1.6450, pt1 at 1.6350, pt2 at 1.6150

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

This is a short term trade idea and I may close my open orders/positions early ahead of of the FOMC meeting and Bank of England meeting minutes. Stay tuned!

BabyPips.com GBPUSD Forums
Setting Newbie Expectations
My Favorite Trading Books
BabyPips.com Forex Chatroom
Forex News
Forex Reviews
Forex Trading Journal
Forex Q&A

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.