Cable, GBP/USD Presented Several Trading Opportunities Today

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Cable, GBP/USD Presented Several Trading Opportunities Today

By Benny Nardino | February 27, 2008

Cable, otherwise traded as the GBP/USD provided great volatility today. The upward burst we had experienced yesterday continued in the early morning trades until a resersal signaled just before 0900hrs (GMT).

Since then the market have moved like a yo-yo. It had vaccilated between 1.9807/1.9974 which is great for us traders but something an investor might frown upon.

The market has trended very well in either direction with huge rewards opportunities in-between. The chart opposite demonstrate the various opportunities presented.

I took a couple of positions today. One early entry in the morning was almost eroded by the downward turn but closed out with 19 pips. That 0900hrs sharp turn was an abberation. As the day worn on, I took a further position at 1.9914 sighting the reversal flag on the 5-min chart. With my limit adjusted to 1.9850 half-way my anticipated level. I made a further 64 pips. A total of 83 pips from cable and a further 58 from GBP/JPY made a very nice day in the office.

However, taking a sneak peek at the second chart, can you see a head and shoulder developed?

Another interesting thought is that the market ended up a little lower than the Asian market overnight low. See the top chart above.

Finally, while the equity market remain volatile, macro economic reports show weaknesses and carry-over remain tentative, these sorts of daily see-saw movements would remain inevitable.

Time to re-evaluate today activities. Have a great day.

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