Sunday, July 3, 2011

Rebecca Patterson wants to get long EUR/GBP on pullback to .8960 target .9200 stop .8870

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.
Rebecca Patterson of CNBC Money in Motion currency trading states in Friday's show (7/1/2011) that she had already recommended being long EUR/GBP before another set of central bank meetings one month ago (there are three slated for the coming week). Her suggestion to traders this week is to stay long EUR/GBP if they are already in, or wait for a pullback to .8960 on the EUR/GBP to initiate a new position.

Ms. Patterson's trade setup is as follows:
Trade summary: Long $EURGBP on pullback to .8960 target .9200 stop .8870 which gives a 90:240 R:RW or 1:2.667.

Here is Ms. Patterson's rationale for the trade: