You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
With the USD still looking pretty strong, I began to look at past moves of this magnitude to see where this move could end, and where we can gain from the pullback. I found a few similar moves in the past couple of years and I calculated to see where this may end and potentially rebound. The following data table is just a trade thought and I do plan on putting this trade on but Hurricane Gustav and Englands' PMI data on Monday may sway me to be a little more careful or aggressive at this time .
1st MOVE
INITIAL MOVE UP
Beginning April '06 = 1.7200
Mid May '06 = 1.9000
18 Big Figures or 10.5% move up
THE REBOUND
Mid May '06 = 1.9000
End June '06 = 1.8100
9 Big Figures or 4.7% retreat
2nd MOVE
INITIAL MOVE DOWN
Beginning November '07 = 2.1150
Mid January '07 = 1.9350
18 Big Figures or 8.5% move down
THE REBOUND
Mid January '07 = 1.9350
Beginning May '07 = 2.0400
10.5 Big Figures or 5.4% rebound
CURRENT MOVE DOWN
INITIAL MOVE
Mid July '08 = 2.0150
Currently trading at 1.8250 or 19 Big Figures = 9.5% move down
The Rebound is going to happen, it is just a matter of where?? I believe a good spot to enter my bid would be 1.8125 area with a STOP LOSS at 1.7900. If the REBOUND is anything like the past, we could see a 5% move back up or 9.5 Big Figures. That a tremendous move, but not out of the question to see GBP / USD move back above 1.9000.
So to recap, I recommend trying to catch this falling knife of GBP / USD 1.8125 with a STOP LOSS at 1.7900 and a TAKE PROFIT around 1.9000, but that will at least a couple of months away. Risk 225 pips to make 900. I may take profit or stop myself out before this trade hits either one of my designated targets, you will just have to keep checking our BLOG.
The other trades I have recommended that are currently live :
On 8/26/08 , I recommended to SHORT EUR / USD at 1.4740, currently trading at 1.4700, with a STOP LOSS at 1.4855 and TAKE PROFIT 1.4400. Again, this trade could be taken off before the designated targets.
On 6/25/08, I recommended to SHORT CHF / NOK at 4.9800, currently trading at 4.9000. That roughly 150 US pips in the money with 2 month of good swaps. This is a fundamental trade and basically an under the radar carry trade and will keep this on for a very long time.
UPDATED BLOG TRACK RECORD on CLOSED TRADES PIPS = 1124