26/10/10 Overnight on the Cable +77

Just a quick update. Had a EURGBP position on Thursday / Friday of last week which I closed at break even on Friday as it wasn’t doing what I believed it would do. Was the right decision running into the G20 weekend as I would have taken a full loss had I held on.  I was away on Monday and so missed the two set-ups of shorting AUSUSD and shorting EURGBP (again). Both nice set-ups which would have made for a nice start to the week.

Anyway yesterday I had signals on GBPUSD, EURGBP and GBPCHF on my 4 hour swing strategy.  All orders were placed late in the day however only Cable triggered.

1. Price had risen back up to an area of previous resistance after a nice run-up and set-up as a brief swing short. Order was placed and triggered me short at 1.5820. I believed that price would probably flag down on a small swing before resuming it’s move north.  Price dipped its toe about 10 pips my way before retracing.  It looked like the 1.5800 handle was going to provide support and that it would not even flag before it moved north.  I was prepared for this trade not to work out and ready to take advantage of the info the market was providing me.

2. Price didn’t do a great deal over night and was hovering about my entry order.  My plan states that I should shut orders down that are not doing what I believed they would do.  I decided that I would make a decision on closing the position once the 8am candle had printed.  In the end that was unnecessary as price dropped hitting my 1st target at 1.5795 for +25 pips

3. I fully expected the 1.5800 handle to hold however it gave way and price fell down further and hit my 2nd and final target at 1.5768 for +52 pips.  All done and dusted. Price did drop a few pips further before retracing hard back above the 1.58 handle

So I’m as surprised as anyone that both my targets were hit for +77 pips in total. But mine is not to reason why mine is just to trade my plan!