A Suggested Adjustment for Short EUR/GBP Positions

EURGBP Daily 180814

Hello, Friends. Here’s hoping that everything is going well, and that all of your trades are displayed in green. On Friday last, it was suggested that a short EUR/GBP position from around the spot level at the time (.8025) had a reasonable ratio of potential reward to risk. That view was based on recent economic reports and on an interpretation of the daily chart, following methods taught by Todd here at TradingConcepts. Thus far, the trade is working, reaching a low today of .7983. That’s still some distance from the initial profit target of 0.7955, but it’s enough so that I would suggest moving a stop down to break-even. Thirty pips or so is hardly a fortune, but I find that there are few things more aggravating than watching paper gains turn into real losses. While I’m not aware of any compelling reason for the currency pair to reverse sharply, my capacity for surprise helps to keep me young, and random headlines are as much a danger for currency traders (and more frequent) as are rogue waves for ships. If the worst thing that happens to our trades is breaking even, we should do very well over time.

Best of luck!