All Trade Ideas and trading scenarios found on FX360.com are hypothetical. FX360.com has not placed these Ideas in a live trading environment. Forex Trading involves high risks, with the potential for substantial losses that exceed your initial deposit and is not suitable for all persons. Past performance is not necessarily indicative of futures results.

EUR/GBP- Important Trade Update

Last updated 3/10/2009 7:57 PM EST (GMT -5) 0 Comments - Add your comment

• Share this:

Bradley W. Gareiss

Technical Analyst, GFT

Yesterday, we updated our profit targets for the EUR/GBP bearish Gartley that has completed ( 3-10-2009 ).  However, point D has extended higher as we have seen a small rally.  Therefore, we must move our profit targets up because the CD leg has been altered.  Otherwise, this trade is the same as we have described earlier.

We sold the EUR/GBP at point D (0.9181).  Point D is located at the convergence of the following points:

The pattern entered above the bearish trend line, but the downtrend is still valid.  It is possible to pierce a trend line without invalidating it.  However, if this pattern is stopped out, we will consider the trend line to be seriously broken.  As we described above, we have adjusted the profit targets again because the pair has rallied to make new highs.  However, the pattern is still valid unless we are stopped out.

To recap, we sold the EUR/GBP at 0.9181 with our stop placed at 0.9277.  Our profit targets are now 0.9054 (38.2% of CD) and 0.8932 (61.8% of CD).  Remember, if you have not entered the trade, it is possible to enter the trade at 0.9181 unless it has already hit the first profit target.  However, if we achieve the first profit target before entering the trade, it is no longer prudent to enter the trade.

8hr Chart - Bearish trend.	8hr Chart - Bearish Gartley; sell @ 0.9181.

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.

The views of the authors and analysts are not necessarily those of Global Forex Trading, its owners, officers, agents or other employees. FX360.com and the currency research team will not be responsible for any losses incurred on investments made by readers and clients as a result of any information contained on FX360.com. Global Forex Trading and the currency research team do not render investment, legal, accounting, tax, or other professional advice. If investment, legal, tax, or other expert assistance is required, the services of a competent professional should be sought.

Loading...