Lately, Monday currency trading tended to be relatively lively. Decent moves, or volatility. Not today. As a matter of fact the opening itself was about the most interesting period of the day. Large gaps, particularly in British Pound crosses were about the biggest technical development of the day. Seemingly, that was caused by poll results in UK, which suggest that election next month might fail to produce a clear winner. Guess it is an explanation as good as any, when there is nothing with more weight to report. GBP went down for a while, but by the end of the day most of the losses were recovered.

Yesterday I mentioned a long trade in GBP-CAD. As luck would have it, this was one of the currency pairs which had substantial gap on the open. I decided to follow it, looking for entry to buy. Had to do it in another account, so one doesn’t get overexposed to single cross. Not the best of feelings if I’m wrong and loaded up above some prudent level. Once some price developed, I started to track minor highs with a buy order. It had to be reset, but eventually price turned up and order was triggered.

It happened at 1.5514. Objective in these type of trades is always dictated by size of the gap. Here I settled on 1.5580. Should have been a little higher, but the gap looked completely different from one trading platform to another, so had to compromise. At any rate, trade produced 66 pips. Another trade mentioned yesterday, long EUR-NZD, didn’t happen, but for now is still valid. At the moment I don’t really see interesting set ups, something I’d consider suitable for this blog. This means waiting for more price development. Only exception could be a run up in Yen crosses, which was covered couple of updates ago, using CAD-JPY. Something to watch.

Mike K.