My Development as a Commodities Trader: British Pound has something going on!
Now that my first target of 1.5850 was hit, I have taken opportunity to reduce 50% of my position around 1.5850 - 1.5900 area. The hard stop on the rest of the position is now below 1.4940 area which is well above breakeven.
As of now I am marking next set of profit taking area as 1.6800 on my charts if we ever reach there.
In my heart, I do not see GBP as a very strong currency in the current environment and I have still not figured any fundamental reason for GBP strength other than general USD weakness, hence I am reluctant to back this long trade by too much risk. However I have learnt to trade what I see and now what I think. The chart is still bullish. If there is any reversal, I am watchign the 1.4996 -1.4940 point carefully. If we start to bounce from these areas or even earlier, I would consider adding more to this long as it might have some life left.
As of now, it is enjoy the free ride moment for whatever position I have left on.
For the remaining position, I have managed to set up a nice butterfly trade, it took nearly 3 weeks to setup.
ReplyDeleteLong 1 SEP 1.5 CALL
Short 2 SEP 1.65 CALL
Long 1 SEP 1.8 CALL
If we stay in range, I will get max 1500 pips. If we stay out I will still get 53 pips. Head I win, tail I win very little.
I have liquidated rest all my futures positions now (1.6 level)