Today was a day you could buy the dips in the USD. Here is a great example of the GBP/USD satisfying a double bottom and at the same time, lining up with the first fibonacci retracement:
Past performance is not indicative of future results
With the poor news out of Italy, you could stay with the trend. You just have to be realistic about your profit targets because as we have seen before, the "V" can happen, where the GBP rallies all afternoon on a rumor. I am not sure we will get that today and I was confident taking a chance going with the trend at a "discounted price". Again, I had stops in place and traded the correct amount of contracts as we know there are no guarantees. Anything can happen at any time.
Let's see where the SPX closes today. My recent posts have talked about the 1240-1220 area being support. We are in that area as we speak. It will be interesting to see how we trade going into the long weekend.
To reiterate, I am still long the GBP/USD looking for the 1.57 handle, but as we know the GBP has been the "flight to quality" as the problems are centered in the Eurozone. I also have the light hedge in place on the broad indexes and will leave that in place through the weekend given current levels.
Tonight I am hosting a free IBFX webinar and we will have lots to talk about. There are a lot of people signed up so bring your questions as the crowd can benefit from them! Here is the link:
https://www1.gotomeeting.com/register/717515353
Happy Trading and Be Environmentally Cool
Coach Brian
Forex trading is one of the riskiest forms of investment available in the financial markets and suitable for sophisticated individuals and institutions. The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose.
No comments:
Post a Comment