GBPJPY straight to the bankYou’ve all head the story of the Bulls, bears , and pigs..., you’ve herd that one before I’m sure!
Bulls make money!
Bears make money!
But pigs get slaughtered!!
Here is another Forex Trading Snack.
GBPJPY along with I think every GBP pair ripped higher today in the markets. Good news on the Brexit front, or just good rumors to spark traders into positioning for what they think the future holds.
Should a Brexit deal get done the pair will squeeze higher, a lot higher!! But with moves like today, some 3 X the 15 day average range of the pair it begs to short it.
First; with a move like today the odds of it retracing some of the move is higher then more of a straight line move higher. Just my opinion anyway.
Second; we are heading into Friday’s trade and the last day before the weekend—do you think the bulls are going to hold their positions over the weekend? Is there a reasonable chance for some news to bomb over the weekend to then take away some of the move anyway? If you think so, what are the odds??
Third; usually after the New York market closes for the day we see a small pull back from the days move and then an extension of that move early into Asian markets open. It’s just an observation on my part. GBPJPY’s pull back after that crazy run higher was small by any standards. Again what are the odds, the chances, the likelihood... or anyway you’d like to put it... what direction has the greater chance of happening in your opinion?
Those are just some of the things I think about in looking at a straight line move of this magnitude.
What’s the trade?
I’m looking to take shorts ( to sell it ) if and when we get a pop up in price towards the 135.00 my stop placement is totally based on ones own risk tolerances. My targets would be if my orders get filled, I’d like to see a pullback to 133.50-1.3400 or better.
I have already traded it to the short side from NY market highs down to 134.05 banking 40 pips per lot traded. But like I say, I believe if it should pop higher it will be short lived. Bulls will be looking to take at least some profits on this move before the weekend. My trade idea is looking to take advantage of traders repositioning because of the straight line move higher.
If you chose to trade this idea the risk is all yours to assume. This is strictly my own idea and shouldn’t be taken as trading advice, but as only a look at how I trade the markets. In this way you can gain some insight and or some good training as to how other traders trade.
You either make dust in the markets or you will eat dust.
All the best my trading warriors.
