Saturday, August 23, 2008

8-21 GBP/USD

After looking back, it turns out that another trade I missed might have been the trade of the week instead of the Euro trade I mentioned earlier. On Thurs. the 21st, the GBP/USD had rallied and approached the high of the week late in the session. The daily range was extended, it was late in the US session and approaching the 38% retracement of a very generous fall from the previous weeks. The 138 retracment of a significant swing aligned itself nicely to the 38% retracment . I would have entered short in the market at 1.8794 but the high only reached 92. This week's candle closed very bearish at the bottom of the range for the week but it remains to be seen if I missed a very good position trade by only 2 pips. None the less, it goes to show that waiting on the market to make sense and trading it at key levels with other factors on your side will make for very good profits.