18 January 2011

GBP/USD : Into Selling Zone

  • Long awaited rally going on now. Plan was to sell towards the upper edge of monthly triangle, which we are seeing now.
  • Allowing myself a 300 point selling zone. Initiated tiny short at 1.5984. Thereafter will add on every 100 pip rally.
  • Bad inflation numbers (Dec +3.7% yoy vs Nov +3.3%). Talk of Base Rate hikes already surfacing. This could be the worse idea ever (or not). We'll see. Looking at weekly and daily charts, is clear that my initial entry point (gtc limit order) was not good.

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