Update on EUR/GBP Position and Possible Trading Setups for Today.

Posted on February 19th, 2008 by Yours Truly under Forex

Yesterday was a great day to go short on GBP based pairs as all of them plummeted severely overshooting their Average Daily Ranges with the EUR/GBP position overshooting its ADR by +15 pips. I am currently +52 pips on my long EUR/GBP position and is currently only 40-50 pips away from the target between 0.7595-0.7615.

Other two possible setups that I am very interested are at the moment lie in the GBP/CHF and CAD/CHF pairs. Other pairs which closely mimic (although are not as nice as the two listed) are the GBP/NZD, GBP/USD, GBP/JPY and CAD/JPY. Here are the two charts as follows:

GBP/CHF: A possible breakout to the down side out of the range support @ 2.1250 would surely signal a short entry.

CAD/CHF: I’m looking for a break-out pull back for me to enter this short position with the target clearly set at 1.0650-1.0600 area as it lies right on the 200-day SMA on the weekly chart.