EUR/GBP (Short)

I had not been updating for a while. While I was still trading the FX markets, I was taking more of a hit and run strategy. Yesterday, I decided to take a shot at shorting the EUR/GBP pair. The entire Euro-Zone is now mired in deep economic problems. Though Britain is not doing too well either, it seem to be doing better comparatively. This week, both central banks will make rate announcements and I am predicting that ECB will play catchup with BOE and slash rates by 50 basis points.

I shorted the pair at 0.8965 and my position is now in the green. I will first aim for a 100 pips gain at 0.8865 and if the pair really plunges, I will move my profit stop another 100 pips more downwards to 0.8765. Technically, this certainly looks plausible. I will be very careful on this trade as the denominator currency is pounds and the exchange rate against SGD is much higher than any other base currency. Still, I am pretty hopeful I can profit from this trade. The guys over at DailyFX seem to have have the same opinion. Keeping my fingers crossed.

P.S. I research on DailyFX http://www.dailyfx.com/analyst_picks/index.html

Update 1
The pair fell smoothly as I expected reaching a low of 0.8875. I am placing an OCO for a stop loss at 0.8950 and a slightly more ambitious profit target of 0.8800. Will adjust accordingly again if the position gather more momentum.

Update 2
Yesterday night, the pair rallied to above 0.894 levels and hit my stop loss. Really frustrating to see a position gaining pips and losing them back again. Argh! Still I managed to catch 15 pips off the table and if the opportunity arises, I will short this pair down again.