Article Summary:

Wskxw.com is dedicated to providing quality information on the subject of Forex Trading for beginners, and in particular, on the various trading systems, and brokers, and tools.The British pound is taking a spanking this morning, down across the board to all major currencies as a result of its horrible GDP number.  GDP dropped .4% vs. a .2% rise expected from analysts surveyed.   This means that the BOE may need to extend quantitative easing to prevent


Article Content:

The British pound is taking a spanking this morning, down across the board to all major currencies as a result of its horrible GDP number.  GDP dropped .4% vs. a .2% rise expected from analysts surveyed.   This means that the BOE may need to extend quantitative easing to prevent the British economy from falling further into recession.

As a result, the AUD/GBP trade I’ve been in for the last few days is still hanging on by a thread and about to get stopped out.  But I wanted to just show on the chart how picking out points of technical significance can help you place stops that will allow you to stay in trades longer.  Let’s look at the chart from this morning (click chart to enlarge).

audgbp1023.JPG

By placing your stop just below technical support, you give the trade a better chance to succeed.

**edit** trade stopped out.

To learn more about how to place stops, please check out our currency trading courses!

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