Sterling Triggers ... Again

After last Monday's dissappointment it was perhaps for the best that I spent the rest of the week out of the country and unable to to trade.

However I returned home early this morning to see Cable, GBPCHF and GBPJPY all shaping to re-trigger the short trades I had first anticipated last week.

Between 0900 and 1000 I entered small shorts in each of these pairs and at around lunchtime profits of 550 pips and a shade under 3% of account were taken off the table. Hurrah !

This emphasises, again, the virtues of patience (albeit forced in my case) and tennacity if a sound strategy doesn't at first succeed.

So, where from here ?

Well each of these pairs still has downside potential before support targets are met.

GBPUSD


Whilst the current continuation pattern may dissipate overnight, I wouldn't enter short until support at 1.3737 can be broken with conviction. I would be targetting the all time low at 1.35 initially.

GBPJPY

This pair looks to be forming a downward sloping channel but for me the key support level is 135.50. A convicted break of this level early - and on volume - might result in a return to the 1H 800 sma as it converges with older support levels around 133.50.

GBPCHF

This pair appears to have the most downside potential of the 3 with the lowest lows way off at around 1.52

However...

With big moves complete, pips banked, significant 'white space' between price and 1H moving averages and dwindling MACD momentum on the shorter term (5-15 min) charts, my personal appetite to the downside on all of these pairs is not what it was.

If I go short again it will be on one pair only, for beer money, and only then if all 3 are falling together.

... And of the 3 I favour GBPJPY, simply because it will be completing a divergence 'cycle' on the 1H chart.

With respect to Cable and GBPCHF, I am more interested in waiting for a short term (5m) divergence opportunity - later in the week - if continued downside is not reflected in MACD momentum on the 1H charts.