So you're the current reaction high eh? I just cannot bring myself to use a stop that's less than 100 pips. At least initially. Once the trade shows profit or bonafide reversal, I adjust.
I am going to stay short the Euro FX and Pound Futures that were taken intraday today. The Pound is weakening on the 60 minute chart and the Euro as well. I will be using a trailing stop on these as opposed to profit target for now. Limit order to buy the Dec Pound at 1.2730 is cancelled.
I mean 1.8730 of course. These quotes between the Pound and Euro Fx are getting confusing with the 7 in there.
EUro had an inside day yesterday after gap up and nice move higher the day before that on the daily chart. Not to disagree with my experience Fx friend, but I am seeing a peek bottom and indication of move back higher in the Euro in the 60 minute chart. Also seeing some bullish confirmation in the 15 minute chart. Therefore went long the Euro (DEC) at 1.2754 with a stop at 2718 which is below the low on Monday. If it does not pierce and close below that low then the short-term reversal shoudl continue. if it does break below 2718 and close there, then the Friday low of 2658 is another support level which if broken will make me go short for the long-term.
The Pound Hourly chart is setting up the same pattern that provided a shorting opportunity on the 15 min chart Tues. Staying short for now. Euro Fx hourly is bouncing, but I will defer to the double top reaction high of 1.28110 for now and stay short.