Andy Busch is Short GBP/AUD entry 1.5025 stop 1.5225 target 1.4025

Disclaimer:  I do not necessarily agree with these trade ideas.  It is good, however, to monitor how other currency traders or Wall Street as a whole are/is positioned.

Andy Busch of CNBC Money in Motion currency trading is short GBP/AUD already ahead of the three central bank announcements next week:

Trade summary: Short $GBPAUD entry 1.5025 stop 1.5225 target 1.4025 which is 200:1000 R:RW or 1:5.

Mr. Busch explains his rationale in the following Money in Motion video from Friday 7/1/2011:


Note that Mr. Busch's Euro short trade suggestion from last week was stopped out for -250 pips, due to the monstrous rally that ensued following a positive approval by the Greek Parliament of austerity measures on Thursday, June 30.

Here is Andy's Money in Motion trade from last week (Friday 6/24/2011).  First, he suggests entering a short of EUR/USD at 1.4200 (pretty much right at market) prior to the following week's austerity plan vote by Greek Parliament, with the intent to add another equal-sized position when/if 1.4075 were to be reached (e.g. double up).

Here is Andy's trade if the second portion were added due to the EUR/USD reaching the 1.4075 trigger price:

Note that no second portion was added because the trigger price was not reached.

At the time of Andy's now stopped out trade suggestion (Friday 6/24/2011), the Money in Motion traders know that George Papendreou successfully got past the first hurdle of the confidence vote on Wednesday 6/22/2011 but they are still awaiting the vote by Greek Parliament to approve the first set of austerity measures on Thursday, June 30.  Andy is betting that the approval might fail or that there is a bearish reaction regardless.

The tone of the Money in Motion traders is overall biased against the Euro at this time with the exception of Todd Gordon who is ambivalent and wants to see the EUR/USD break its trading range to determine what direction to trade it.

Click here for last week's video from CNBC with Andy Busch's trade idea