GBPUSD 1-12-07

1-12-07

GBPUSD

There was a long trade entered at 1.9328 yesterday that was a 72 pip winner and a short trade at 1.9400 that was a 10 pip winner. I was fortunate that the sell off above 1.9400 occurred early in the morning before the interest rate hike in the UK and that I was trailing my stop ahead of the decision. I don't pay attention to fundamental news as a rule. I am upset that I wasted a good entry for a long move at 1.9328. The sellers had been in control up until the UK rate hike. That surprise decision lead to a rally into the area of supply at 1.9530 and a pullback to the 1.9390 area for another long trade later in the day. The reason for the entry at 1.9390 was because that was the last place where the GBPUSD based ahead of the surprise decision and there were likely to be willing buyers the first time that the GBPUSD traded back to that breakout area. Anyone who follows on a regular basis knows that those pullback trades are the highest odds, lowest risk entries. The long trade will be held for a move back to the 1.9750 area with a wide stop.