HOW I AM PLAYING THE CABLE

Discussion in 'Forex Signals' started by thepipaccumulator, Sep 8, 2014.

  1. #9– 08.09.2014

    HOW AM I PLAYING CABLE?

    Wow, that was some move from the opening GAP lower yesterday with the GBP/USD.
    Across the board all the cable related pairs were hit but my focus in this short article will be on the GBP/USD.

    WHAT HAPPENED (NEWS EVENT): -

    Basically a further voter’s poll was taken about the Scotland referendum about leaving the UK. The poll took voting intentions from just over 1,000 people and the GBP/USD dropped from Friday’s close more than 200 pips. These sizes of moves were reflected also with the GBP/CHF, GBP/CAD, GBP/AUD and GBP/JPY etc.

    In my blog over the weekend I highlighted trading the GBP as a high-risk currency to trade and it still is. Bearing in mind that the actual vote does not yet take place for another two weeks there are plenty of times available for more polls to be published, which will move the GBP about with potential for massive volatility.

    If you are a cautious trader, avoid this pair. If you like to take on board some risk this will be the pair for you for the next two weeks.


    HOW WILL I TRADE THE GBP/USD? :

    It opened at 1.6171, moved above and fell as low as 1.6103 in the early morning trading in EDT.

    It is now (08.09.20140930 EDT) pulling back towards the GAP opening price and possibly a little higher.

    My trade idea is simple. Sell into rallies but at the same time keep my position size small with tight stops. I am looking at around 1.6170 -1.6200 as my level to look to enter short.

    Please remember even with tight stops if news hits the market and there is swift move your stop my not get triggered until maybe 50-70 pips past your level on line with your broker. This is the high –risk element in trading any pair with GBP attached to it at the moment and for the next two weeks. If you decide to trade the more exotic GBP cross-rates the moves could be wider resulting in your trade being filled maybe over 100 pips from your requested one.

    This is the risk of looking at the GBP, be very careful.

    Scott Pickering
    The Pip Accumulator
     

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