This pair is consolidating again in a narrow trading range. You'll remember from last week that this pair tried to break out of the wider channel, only to pull back inside. We made a few pips, but it was mostly an aborted trade. We'll hope for better this time. The pair has been trading in about a 60 pip channel for the last day and a half or so. I'd look to buy above 1.5380 and sell below 1.5316 (that is the narrow channel). The wider channel is on the high side 1.5450 and on the low side 1.5226. I'll do the same thing I did last time, initiating a half sized position upon the close above or below the inside channel and then a second half upon the close above or below the wider channel. Same rules and profit targets as last time (see last Thursday's post.)
I'm also watching the EUR/GBP. If you look at it you'll see that it has been trading in about an 80 pip channel, in a slightly downward direction, since the wee hours of Thursday morning (Eastern time). My channel lines are drawn on the high side using the high of the 0200 EDT hour bar on 3.19 and the high of the 1800 hour bar on 3.22. On the low side it is drawn on the low of the 0700 EDT hour bar on 3.19 and the low of the 1200 EDT hour bar on 3.20. (If I ever figure out how to put art up on this blog, it will simplify my channel descriptions immensely). I'll buy on a close above the line and sell on a close below the line. I'll use a 30 pip target for move to break even and then put a trailing stop on to guard my profits. I'll keep you posted!
Happy Trading!
I'm also watching the EUR/GBP. If you look at it you'll see that it has been trading in about an 80 pip channel, in a slightly downward direction, since the wee hours of Thursday morning (Eastern time). My channel lines are drawn on the high side using the high of the 0200 EDT hour bar on 3.19 and the high of the 1800 hour bar on 3.22. On the low side it is drawn on the low of the 0700 EDT hour bar on 3.19 and the low of the 1200 EDT hour bar on 3.20. (If I ever figure out how to put art up on this blog, it will simplify my channel descriptions immensely). I'll buy on a close above the line and sell on a close below the line. I'll use a 30 pip target for move to break even and then put a trailing stop on to guard my profits. I'll keep you posted!
Happy Trading!
