August Trade #3 - BUY GBP/USD

August 6, 2009 7:00 pm (Manila)

Surprise, surprise, surprise. The BoE dropped bomb on the market today with an unexpected increase in their QE program. I guess somebody decided that they want a real recovery --- and fast! And they're willing to get the Pound get pounded in the process. Ouch!

Trade is out at -57 pips/lot for a total of -228 pips. There are days like this.

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August 6, 2009 1:50pm (Manila)

BUY GBP/USD @ 1.7004
Stop - 1.6947
Limit 1 - 1.7034
Limit 2 - 1.7064

Tonight, the BoE releases their interest rate decision. It is expected that the central bank would keep interest rates steady and the Quantitative Easing Program untouched. Such moves would be a boost of confidence for the Pound.