It's been another decent trading week this week with two winning trades out of three. As in previous weeks, I've been looking to go long on the GBP/USD and EUR/USD pairs (despite the Supertrend indicator still being red on the daily chart) as I think they are both likely to turn upwards now, and for the most part this has proved to be a profitable strategy.
The losing trade came on the GBP/USD pair earlier in the week. The EMAs crossed upwards on Tuesday afternoon/evening, and I went long after a pull-back at 1.5250. Unfortunately this one never looked like it was going to come good and I closed out the following day to bank a 40 point loss after the EMAs crossed downwards again. Sideways markets can destroy even the best trading systems.
The next upward EMA crossover on this pair made up for this loss, however. I went long yesterday afternoon at 1.5258 and closed half the position for 50 points early this morning, and closed the other half of the position at 1.5358 when my 100 point profit target was reached. I think this pair could go a lot higher, but I think it will probably fall back a bit before doing so, which is why I took a relatively early profit. Anyway I was more than happy with the end result, particularly as there was another good set-up presenting itself on the EUR/USD pair.
I went long on this one earlier this morning at 1.3390 after the EMAs crossed upwards (and after there had been a decent pull-back). I was getting worried about this trade as it headed lower this afternoon into the 1.3360's but thankfully my 40 point stop loss wasn't triggered and the 4 hour trend eventually prevailed, driving the price up to my initial 50 point target at 1.3440.
I actually ended up closing the entire position for 50 points in the end as I was just relieved I didn't finish the week with a loss, but I do think there is more upside to be had (take a look at the daily chart and you will see a very bullish divergence pattern on the MACD indicator). In fact as I write this the price has already gone 33 points higher than my closing price, but I'm always happy to close all my positions going into the weekend, even if I do miss out on a few extra pips.
Overall though it's been a profitable week and I can't complain at all. I can now look forward to a lazy weekend watching the US Masters and finishing off my last remaining Easter egg. Have a good one.
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