London got off to a quick start with the GBP/USD breaking some minor recent support on it's way back to below 1.99. This break was trappable, and offered one shot at a pullback entry at the 50% Fibonacci area on short term charts. After this extension was quite fast to first support at 199, and then onward to the 50% fib of yesterdays range at 1.9871. Depending on trade management this was a fairly quick and painless 30-60 pips on the pullback entry. After this the majors became quite choppy and without follow through for the remainder of the session, that is until the BOE meeting minutes were released. After the surprising 6-2-1 vote, all GBP pairs spiked strongly. GBP/CHF in particular had been in a very definable range prior to news, which broke the resistance at around 2.0046. Doing a quick Fibonacci study of the 3 minute news candle placed the 50% retracement level right at this previous resistance at 46. Planning on role reversal we waited until a pullback to this level, pulling the trigger there on a long around 1.9949 with a fairly tight stop somewhere under the 35 area. things started out ok but the hourly bollinger band was not cooperating. Things looked dicey, but never broke our entry point. Finally price moved onward to a +30 pip or so point, allowing us to move our stops to break even. Eventually we did reach 2.01 which offered traders either a chance to close at a nice 50 pip trade, or to protect a 25 pip (what we consider map-minimal acceptable performance) on this pair and reach for our overall target around 199.70. All GBP pairs however ran their course and reversed lower than before, which stopped us at +25 pips, oh well. Tricky session indeed, but still a decent amount of pips to be had. Remember, capital preservation is goal #1, so 60-90 pips on 2 trades works for me on a tough night.
FXBootcamp London Currency Coach-
Christian Stephens
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