It was a fairly productive day yesterday – so the exercises in the morning really did help. Scored 8/10 today.
Open positions – both of these have moved into my favour now – with both Sterling strengthening and Aussie weakening – thus GBPAUD is now at +140 pips and AUDUSD at +50 pips. For GBPAUD, I moved the stop to 1.8448 (+28) and set T1 at 1.8577 (+157) for half of the position. I did that after looking at pivot lines and Fibs. For AUDUSD I moved the stop to 0.8954 – reducing risk to around 0.3R.
Fairly big day today – with two rate meetings. Thus really need to stay out of EUR and GBP pairs, until the afternoon.
Sterling continues to be very strong. The others are all merging together – USD, CHF, NZD and EUR are all between 8 and 10 points – the weak ones continue to be AUD, JPY and CAD.
Thus on the whole – looking to buy Sterling, looking to sell the weak ones, and looking to sell CHF because it continues to weaken.
There are no new STAM setups as at this morning – well, none that I would like to take. Additionally there is a ‘no trade zone’ for EUR and GBP
Equities – The European indices are still in S1B. However they also cannot be traded right now because of the ECB & BOE meetings. Additionally I still have the issue of not having proper pullbacks.
I am noticing that GBP is overbought across the board ahead of the BOE meeting – on the 4H charts. I guess it’s normal that a currency with a 14 rating will often be overbought.
No new setups on S3 at this time.