Trading Update 8-11/02/10 Cable, USDCHF & GBPJPY – +124 points

Much like FXTrader Alans last post January was a period of upheaval for myself as I moved locations from central London to the rural idyll of a small village in Oxfordshire.  As I mentioned in my post on Psychological Stop Losses I placed myself under a stop trading order whilst I resolved my move and settled into my new abode.

So I started looking at charts last week to ease myself back into the game and then over the last few days started to look for a few trades as follows:

GBPJPY – looking at the markets on Sunday evening I felt that there had been massive overselling of GBPJPY and I expected a reaction to that.  Whilst the trend was down a I felt there would be a bounce off support, what I wouldnt know is how strong that bounce would be.  I looked to go long at 139.38 with a target at 140.34

Price triggered north over night but it took approx 36 hours to hit my target for a profit of +96 pips.  Price has continued north and may well even head back to the medium term moving average.  But for me this was a set and forget trade and I was happy to let it do its thing.

 USDCHF – Monday 8/2/10 – Intra day trade – Royal Flush -17

Looked to take a trade on continuation of dollar strength in the USDCHF. I was wrong, simple as that.  Price actually offered up a nice reversal trade in hindsight.  Ahh hindsight….a wonderful thing.  Will attach a chart when  I can find it in my records.

GBPUSD Thursday 11/2/10 Intra- Day trade +24 + 15 x2

It’s been an interesting week with lots of action….and changes in direction.  This opportunity was provided yesterday on Cable.  It was part of the same trade that FXTrader Alan talked about in his last post.  I came to it late but the set-up he presented was picture perfect, a lovely opportunity.

 After it’s overnight run-up cable decided to roll over and fall.  When price re-entered my the selling zone for me I went short @1.5597.  I took 1st profits at 1.5573 for +24 points and decided then to move stop to break even.  I recognised that there was a great deal of support in the 1.5540 – 5560 zone and felt that it was unlikely to break that unless there was new news or a big push.

When I moved down the timescales I felt that price action was telling me that the move south was running out of steam.  We had reached an area of support / demand for cable.

Price was bottoming out on the 5 min chart and when it started to hit a previous support level  I decided that it was time to leave.  I closed my final 2 portions of the trade for +15 pips.  In the end price rallied strongly from that support area and never looked back.  On this occasion I made a good decision at the time based upon what I could see in the charts.

So far then this week there’s been 3 trades, 2 winners and a loser for a total of  +124 points. A nice gentle easing of myself back into trading following a period of upheaval.