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Past and New Entries on Pound Crosses

Market Analysis
2017-07-14_12-35-43

GBPUSD, H4

Several entries in the market have been taken the last 2 weeks, and mostly with Pound crosses.

Last Friday I entered Short in GBPCAD: “Sterling took a dive on the catalyst of weak UK data, with production, trade and house price numbers all undershooting expectations today…..A entry was taken in GBPCAD pair, at 1.6740, after the break of 50-period and 20-period moving avreage in the 4hoir chart.  Intraday Target has been set at the round level, i.e.1.6700, while a Daily Target has been set at 23.6 Fibonacci Level, which is 1.6610.  Support is at 1.6850.” Targets were hit the same day, with Net Gain +130 pips.

Another short position was taken in EURGBP, on Wednesday, which I wrote: “After Sterling’s rally, a Short position was taken for EURGBP, with entry at 0.8892. The EURGBP posted year high at 0.8940, however afterwards a retracement was noticed in the 4-hour chart, with pair trading back lower. Hence Intraday targets were set at 0.8870 which is the 20period moving average, and at 50.0 Fibonacci level i.e, 0.8850. Support set at 0.8930.”  Again, pair reach our intraday Targets the same day, gaining +42pips.

On July 6, I wrote that: “However, after today’s ECB’s comments, a new trade was taken for EURGBP. The break of the 0.8800 level, also the last upwards fractal and lastly three bullish candlesticks noticed on a 4-hour chart, triggered us a Long position with entry at 0.8803.  Target has been set near last week’s high and also according to ATR (14) in the Daily Chart, i.e. 0.8850 and 0.8880. Meanwhile an intraday target was also set at 0.8830 Support set at 0.8730, which is also the 200-period EMA in the 4-hour chart.” This was a longer timeframe position, with the first two targets being successful the next day, while Target 3 was hit on Tuesday 11. The Net gain from these positions was at +77 pips.

On July 4, I insisted on keeping a position taken on June 29 for GBPJPY after my 1st Target was reach. Hence as I wrote: “The GBPJPY in the 4 hour chart extends its upper Bollinger band and makes also higher upper Fractals. Entry was taken at 146.03 with targets at 147.00 and 147.60. Support was set at 144.30.” – This position still holds since pair manage to reach up to 146.92 high, and still looks bullish with some intraday trend correction” – A Net gain of + 157pips was achieved at the end of last week.

Lastly, since Pound crosses have been very profitable within July and on the anticipation of today’s significant US CPI data, an intraday Long position was taken for cable. Therefore after yesterday’s Daily strong bullish candlestick and today’s opening at 1.2935, an entry was taken at 1.2951. A target was set Long at 1.3010, despite the fact that Parabolic SAR are negative in a Daily chart.

In the Intraday charts, such as hourly one and 4-hour one, Parabolic SAR are positive, while RSI is at 64 and 67 respectively, looking up. Support was set at 50 DMA, i.e. 1.2870.

 

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Andria Pichidi

Market Analyst

HotForex

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