Wednesday, December 29, 2010

Buy on GBP/USD (or FXB)

The GBP/USD has shown a lot of strength as the dollar has sold off today. If price clears the high 1.5520, price should continue to 1.5630 within 2-3 days. This is a 1 to 1 risk reward as we will be placing our stop below the lows of 1.5350.

A trade on FXB, scalping options on a currency ETF, we would buy a 155 call near 1.10 and we should be able to see it for 1.60 within the 2-3 day time frame.

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