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Update: EUR/GBP Forming Opportunity to Go Long at 0.8614

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Last updated 1/28/2010 6:58 PM EST (GMT -5) 2 Comments

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Bradley W. Gareiss

Technical Analyst, GFT

The bullish butterfly we posted yesterday for EUR/GBP has completed and reached the first profit target.  Therefore, we must move our stop and second profit target.  We will move our stop to the initial entry at 0.8614.  This way we will break even on our remaining position in the worst case scenario.  The pair also went slightly lower than expected before reversing, so we have to drop our second profit target to 0.8695.  This may seem like a small change, but I have seen 2 pips make all the difference in the past.  We will now simply wait until the pair hits our new stop at 0.8614 or our new T2 at 0.8695.  Also, if you have not entered the trade, it is no longer prudent to enter because we have reached T1.  

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  • 1hr Chart - The trade with the entry and exits that were posted yesterday.
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  • 1hr Chart - The trade with the updated stop and the updated second profit target.

The information, including Commentary and Trade Ideas, provided on FX360.com should not be relied upon as a substitute for extensive independent research which should be performed before making your investment decisions. Global Forex Trading and FX360 .com is merely providing this information for your general information. The information and opinions presented do not take into account any particular individual’s investment objectives, financial situation, or needs. All investors should obtain advice based on their unique situation before making any investment decision and should tailor the trade size and leverage of their trading to their personal risk appetite. Any projections or views of the market provided by FX360.com may not prove to be accurate.

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Comments (2)

kevynsim

January 29, 2010 at 07:23 AM ET

Bradley what do you mean when you say "additional long bars in the CD leg near the entry would also invalidate this trade". I mean, how long are long bars? Is there an indicative length?

bgareiss

February 01, 2010 at 01:28 PM ET

This article should help- http://www.fx360.com/commentary/brad/2673/warning-signs-long-bars-review.aspx. Brad

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