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Weekend Trading Update. UK Credit Rating Downgrade Sees Cable Tumble.

Hi guys, sorry we had no midweek update this week, but i have been too busy to post one. Anyway here is the weekend trading update. We have had some great price action trading this week, which has given us some great pips.

Cable fell almost 100 pips last night after a downgrade from credit rating agency Moodys. The downgrade is the first in 30 years and sees the UK lose its triple A credit rating. The downgrade means that the UK will have to pay more interest on its borrowing, which will add a bit more to its debt pile, and they may need to do more QE.

We could see cable fall a bit more on Monday, but i think we will see Cable recover from its lows next week, as the downgrade fears are now out of the way, and traders love a bargain, so i think we could see a nice rally on Cable in the coming weeks.

The low for the week on Cable was 15130. I had a price target of 15135 as a long entry, which i took on Thursday. We had a nice rally off that level and we managed to get 134 pips from that trade.

Ozzy Dollar revisited my 10225 level on Thursday. I did say last week that it would revisit that area on Tuesday or Wednesday this week. It almost hit on Wednesday, but finally hit Thursday, so i was a day out. 🙂

We took a nice trade off the 10360 level all the way down to 10262 for 102 pips. I did consider holding the trade overnight for a revisit my 10225 level, but i don’t like holding AUD shorts overnight, as the swap is a killer.

Euro Dollar had been consolidating for most of last week in preparation for this move down, which we traded very successfully. The price hit my short target at 13429 and we took the move down to 13283 for 146 pips. I had been waiting for this move for over a week, and the extended consolidation told me that it would be a pretty decent move. The price typically pushed up from consolidation before moving down very strongly. I did make comment predicting this Euro move on Forex live.

Euro Yen also moved down along with Euro this week, which is no surprise. It was in consolidation yesterday though as was the Euro. We took one small trade on Euro Yen yesterday for 30 pips.

Here is an update on all the trades we took this week.

Monday we took 2 trades on Cable, both short, one at 15475 down to 15440 for 35 pips. We also took it again at 15450 down to 15484 for 34 pips.

Tuesday we took Cable short again at 15484 down to 15424 for 60 pips.

Wednesday was the start of our week really. First trade was Euro Dollar short at 13429 down to 13283 for 146 pips. We also took AUD at 10360 down to 10262 for 102 pips.

Thursday was a pretty crazy day, we took quite a few trades on Thursday. We took Cable long at 15135 up to 15269 for 134 pips. We also took AUD long at 10226 up to 10260 for 34 pips, we also took it again at 10235 up to 10255 for 20 pips. We also took Euro long at 13174 up to 13224 for 50 pips. We also took it short at 13230 back down to 13174 for another 56 pips.

Friday was a quiet day. We took 2 trades one trade which was Euro Yen short at 12349 down to 12319 for 30 pips. The other one was a losing trade on Cable long, which we got hit for 24 pips. It was a silly trade really, and i should not have taken it, but i got greedy. I had been having a very good week, and thought i was invincible. It was not a high probability trade, and i got my ass kicked. It happens sometimes when you are on a roll, you lose a bit of focus and you need a loser to re focus your mind. It worked anyway, i am totally Focused for Monday. 🙂

Total trades for the week 12. Total pips 677.

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