Slow Week For Me

Due to the pressing concerns of the job and academia, I was unable to make as many entries as I'd like this week. I'll keep working on this, I promise.

In the meantime, my idea to have opposite limit orders ready for Wednesday's trading day didn't get tested as price , so there are no new trades to update.

Today's fundamental news was bad for the Cable, sending it to slightly north of 1.8800, down from 1.8920. I don't know if this will carry through to next week. I'll check in Sunday night to take a look.

In other news, I'm planning on downloading MetaTrader and playing around with the programming interface to create an automatic trading system. Might as well play around with some code and put that undergraduate education to use.

That's it for now, I'm sorry for not being more informative.

A Winner!

Looks like Monday's trade was another winner! S1 provided the support, and I think the 1.8600 "Double Zero" support might have kicked in as well. I took my 30 pips on the bounce.



What happened today? Higher than expected UK CPI pushed the Cable higher this morning, about 100 pips higher, from 1.8650 to 1.8750, where price currently hovers.
The 4Cast outlook for tomorrow doesn't see much movement for the Cable, despite some UK employment data due out. I'm going to trust in the pivot points to get me through the day tomorrow. I'm going to try a technique where I'll buy if price hits S1 1.8669, and sell if it hits R1 1.8780 and I'm putting both limit orders in at the same time.

Here we go...

What a Week!

I miss a few days of Forex action, and the GBP/USD pair falls almost 500 pips.

What's the reason for the monumental sell-off? Well, as best I can tell, there are four main contributors:

• Service PMI breakdown
• Big oil discovery in Gulf of Mexico
• UK Industrial Production on the median
• Turmoil around the imminent departure of British Prime Minister Tony Blair

What's good is that I forgot to actually place the order I described in my last entry. And its a good thing too, I would have given up some pips.

The next question is what's coming up this week? Well, we have Retail Sales coming out on Tuesday 9/13, and CPI on Friday 9/15. Perhaps a better than expected Retail Sales report will scare folks into thinking the Fed will raise interest rates, or lower than expected CPI would do the same. Either situation will result in the Sterling falling further.

My plans for tomorrow are to buy at 1.8625, as it is support according to my consolidation chart:



The T/P is set at 1.8655, the S/L is set at 1.8895.

A Winner!

Looks like my idea of shorting the Cable expecting it to slip in rangebound trading turned out to be a good one (that's hella rare):



What's on tap for tomorrow?

As best I can tell, nothing!

I firmly believe that in the absence of fundamental data, the technicals rule.

With this in mind, seeing a negative divergence (is there such a thing?) on the MACD and seeing that price is currently at 1.9034 and a pivot point at 1.9058, I expect the Cable to fall and then rise. I'm putting a buy in at 1.9020 with a 25 pip S/L and T/P. Let's hope this pivot point stuff is working tomorrow.

Labor Day Weekend Nears an End

How ironic - give workers a day off and call it Labor Day!

But, unlike a great deal of America's workers, Young Pip is here, working hard as ever on understanding the Forex universe.

The Cable has been rangebound today, hovering between 1.9040 and 1.9070.



The good people at 4Cast expect the Sterling to slide, so I'm putting in a sell order at 1.9070 with a S/L and T/P 20 pips out.

That's all I have for today.

Keep on pippin'!

Good Idea, Bad Execution

My sell order from last night didn't get filled, which is fine. I actually expected that.

So I waited until this morning to get in on the US employment news release. The data came in where it was expected, with 128K Non-Farm payrolls and 4.7% unemployment. Since this met expectations, I expected the Cable to fall, and sure enough, it did. I put a sell order in, but the OANDA game server froze. I didn't get my order filled when I wanted it to. When I decided to close the order because I couldn't get an update to the order, I didn't know where it would close. Turns out it was at 4.5 pip loss. Bummer.

So I had the right idea, but technical limitations prevented me from getting what I wanted. The Cable sank from 1.9060 all the way to 1.8960 before righting itself and returning to 1.9060. I think the -1.2% from the Construction Spending data that came out at 10:00 AM might have contributed to the recovery. If you did things right, you could have gotten about 200 pips round trip.

I'm almost tempted to put an order in now to buy if the Cable falls to 1.9020, but given the weekend is rapidly approaching, I don't want to get caught with an open position. I'll just have to miss out on this one.



Have a good Labor Day Weekend.