Looking at Cable this evening we can see the trade that I entered at the beginning of the week has benefited from strong Risk-on sentiment in the markets today. This was after a slightly negative overnight session in Asia which very nearly saw my trailing stop triggered at 1.5703 (the market traded down to the Bid at 1.5706 after the Chinese P.M.I figures were released. I have to acknowledge Lady Luck on this one! Though I definitely think it's about time she graced me with her presence!) We can see on the 1 hr chart below that a strong rejection candle (signified with the Arrow) briefly piercing the bottom of the Trend Channel, before strong buying stepped-in and establishing the false break which went on to set the tone for the European session. This would have been an excellent trading set-up if I had been awake to capitalize on it.
As you can see from the 2 charts above; I have now closed out my long GBP/USD trade for a respectable 1:3ish Risk Reward. My decision for closing stems from the clear rejection and loss of momentum determined by the hammer on the 1hr chart which has occurred at a significant previous support price level on the daily as well as trend channel on the 1hr (lesser importance). If I can get onside with this trade and some negative news emerges from Europe then it could have some legs. The market seems to have priced in a positive resolution to the Greece debacle; so any News to the contrary could have real shock value along with the renewed concern over Portuguese yields. So I think you could do worse than be short this market at the moment.
No comments:
Post a Comment