Overnight the GBP Dipper produced a handsome 75 pip gain after being closed out with our 15 pip trailing stop at 5:15 (Chicago time). Once again the trailing stop helped preserve our gains. Had we stuck with the trade until the fixed time exit at 8:00 we would have given back an additional 20 pips. But the real fun was at 8:10 when GBP plummeted 120 points in just over 30 minutes. I bet that took out a few stops before GBP shot back up 80 points in the next 45 minutes. Pass the Prozac….
Meanwhile the dollar continues its slow, steady decline. There’s a lot of love out there as evidenced by all the green cells on the Rotator but the dollar has been left out of the party. Ditto with the Canadian dollar, suffering a guilty-by-association fate as concerns that US recession fallout will spill over to our Northern neighbor. The technicals look neutral to bearish and likely poised to pull FXC back to the 93 level from its current 96.52 perch….
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