Posts Tagged ‘ GBP/USD ’

John Kicklighter, on Thursday January 13, 2011, 8:22 pm EST

How many Times has this happened to you: you avoid a trade that doesn’t meat all of your well-thought-out trade criteria only to see it shoot in the direction you were expecting. this happens to me frequently; and it seems to have happened in excess to me this past week. the biggest issue that I have been encountering is that there are great trade setups; but I don’t want to use limit entry orders as it would require warping the trade or potentially jumping into a false move. this has kept me out of successful trades on GBPUSD, GBPJPY, EURAUD, EURJPY, EURCHF, EURGBP and others. Many that suffer just such an issue would react by dropping this particular rule. However, I won’t be doing that. not taking certain trades overnight with limit orders is a condition that I came to for a reason. Besides, this was a lesson learned the hard way – with losses and bad trades in the past. I’m not exactly the most disciplined person; and this was something learned over time.

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On the other hand, there is always some level of flexibility that we need to maintain in Trading (even automated Trading requires tweaks to the system or changing around to a different system for different market conditions). Adapting with EURUSD, I am putting aside concerns about picking tops and taking weekend positions. A reduced size EURUSD short from 1.3335 with a 100 point stop and first target is a setup that is based on the belief that the rally this week is far more aggressive than market conditions should warrant. That being the case, an overextended move meets common resistance to encourage a pullback (not necessarily a reversal).

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The similar time frame for yesterday’s AUDCHF setup played out relatively well. A 50 point first objective proved sufficient at 0.9605 to be hit and then subsequently hit a trailed stop at break even on the remaining half. AUDCAD has its own trailed stop at 0.9925 that is still stainding – but for how long? USDCHF similarly is waiting to see a second objective (loosely targeting 0.9850/9900); and may even be good for a short-term range swing. USDJPY is still setting its long-term sights on a rough sea; while the shorter-term CADJPY has quickly tripped back towards its stop around 83.10 (this was taken hastily on reflection – it was my own rule to wait for that Fib and 200-day SMA to give way).

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Keeping an eye out, there are a few opportunities out there. most interest is GBPJPY approaching its larger channel top now around 132.25; and AUDJPY aching to put in that long-awaited reversal below 82.

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Tons of Opportunity but Rules are Holding Me Back

Ilya Spivak, On Friday December 31, 2010, 4:26 am EST

strategy: Pending Short

GBPUSD is little changed from what we noted last week, with priceslocked in consolidation above support at 1.5348, the swing bottom from late August. Near-term resistance remains at 1.5528, with the overall picture looking bearish as long as prices remain within the falling channel established from the swing top in November. As it stands, positioning is not attractive to enter a trade at present and we will continue to monitor price action for selling opportunities.

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To receive future articles by email, please contact Ilya at ispivak@dailyfx.com

DailyFX providesforex newson the economic reports and political events that influence the currency Market.

Learncurrency tradingwith a free practice account and charts from FXCM.

GBPUSD: Ranges Hold But Bias Bearish