The GBPUSD traded sharply up this morning to retest 1.8860 from its low of Frankfurt open @ 1.8727. Meanwhile, the USD, dollar gains reprieve rumor swell of rate hike. The sharp rise in the sterling was never going to be sustain because of UK market weakness.
Pricing wasn’t strong enough to hold. It headed southward again as the day wore on with its head and shoulders. None of the better than expected CBI report mattered today as the economic weakness of previous weeks came to the fore.
The latest weakness in the UK equity market also contributed to the ‘southbound train’ movement on cable, GBPUSD as seen on chart above.
The euro, EURUSD surrendered its early gains as well. Those gains it made after a closely tracked measure of German business confidence was stronger than expected, suggesting the euro’s recent appreciation hasn’t hurt Europe’s largest economy as much as some had feared.
US Dollar Gains on Further Rates Hike Speculation
The U.S. new-home sales data support the case for “further rate hikes,” The Interest-rate differential also helped buoyed the dollar across board today.
On the contrary, as forex currency speculator, it does not really matter where it goes as long as the market is never still. All I am interesting in is making the right entry and exiting at the right time.
Having these factors in mind, I should say, “Today was a great trading day” especially with GBPUSD and the EURUSD.
However, it was great trading day. I enjoyed a good run of profits today. It all began with a +70pips ride in the morning, I took a position @1.8765 on signal.
Having exceeded my daily target of +53 pips I was prepared to wait and see what happen next at US open. I missed the breakout @1.8825/35. As result, I was anticipating a pullback which happened around 8742/85.
I took the southbound position @1.8771. Using my ‘trailing strategy’, TS, I took a further position on the EURUSD @1.2822. I exited both positions @ 1.8660 and 1.2758 respectively. A further +106 and +64 pips were accumulated for the day.
On today’s trades alone, I gained (70+111+64) which amounted to +245 pips. After three days of trading I am currently up by (245 +44+77) +366 pips on the week. At the moment I am up on my weekly target by +66pips. Not bad at all.
Your Take Away
It is true that the USD, dollar gains today is a relief after many sessions of taking the hit. The question is, is it sustainable?
How did you do on your trades? Leave me your comment.
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