Trade Update - GBP/USD Short CLOSED

Update 03-05-08 10am:
A sudden reversal in trend caused us to close the final lot at break even. But overall, this was a successful trade.

Lot 1 (closed at 12:24am): +75 pips
Lot 2( closed at 2:06am): +125 pips
Lot 3 (closed at 8:11am): 0 pips

Total Pips: +200
Total Profit: $190.58 ($200 - $9.42 in rollover premium)

Update 03-05-08 7:30am:
Finally we got this trade right. The Cable continued moving lower as we expected, but its still finding some resistance close to the 1.97 mark. More profits depends on whether we can break this level. But the first 2 lots have locked in profits of +75 and +125 pips respectively. And the 3rd lot is +35 pips up.

The Trade:
Entered this trade one again. As mentioned in my previous post, I feel we are about to see a big drop in the Cable, and I was just unlucky with the timing yesterday. The Daily chart still shows the signal using OzFX method. And what more, the charts show a double top as well as a double bottom. And the current price is very close to the top. And the price is below the 200 SMA. So all the technicals indicate for a downside move.

I have given a wider stop than normal (100 pips for all 3 lots) just to give me more leeway and not get stopped out like yesterday even though its against my money management rules.


Lots: 3
Entry (Short): 1.9865
Stop Loss: 1.9965
TP1: 1.9765

As a side note, in the chart below of GBP/CAD, I have added the Fibonacci retracements, and it gives you an idea why there was some resistance to the downside. Now I believe the whole Fib levels are a bunch of crap as it do any magical thing. But too many traders use these tools, and they end up placing stops or limits based off these level. Which ends up making the Fib levels a self fulfilling prophecy. Anyway, here is the chart.