Took two trade signals last night/this morning. One was on the GBP/USD which I hesitated to take because of the interest statement due out tomorrow, but the pair has moved so little in the past week I didn't want to miss a breakout on the 1 Hour chart. The first signal was a long which was quickly exited for a 47 pip loss. Then a short signal was taken... I decided to close out the trade at the end of the NY session today for a 72 pip profit instead of waiting for an exit signal as I don't want to get stuck in a "short squeeze" if the break of the 1 Hour support line was caused by traders exiting their positions before the Pound interest rate announcement and is not a real move to the downside by the Pound. In my opinion the price of the Pound is undervalued right now against most of the other currencies and if there's no rate cut tomorrow it will probably cause a big spike to the long side. I don't want to get stuck holding a short position if that happens.
The USD/CHF also generated a short signal that I took for a 10 pip loss, then a few hours later generated a long signal which I took. I'm currently in that trade with a 20 pip profit. The target for this trade is 1.1185 which is the next major resistance level on the 1 Hour chart.
So, even with the two losing trades to start the day, I'm currently in profit for the day by 15 pips, maybe more depending on how the USD/CHF trade turns out. I'll post the results of the trade here on the Forex Profit Monster blog once it runs its course.
Tomorrow is a big news day with interest rate announcements and Trichet and Bernanke scheduled to speak, so I don't expect to take any trades tomorrow, but will be monitoring the trade that I have open.
Current "realized profits" for the month of January... +500 pips.
For more information about the Forex Profit Monster System, visit the website at http://www.forexprofitmonster.com/.
Jim
http://www.forexprofitmonster.com/
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