Profit-taking ahead of ECB meeting

I suggested EUR/GBP shorts on February 14 at 0.8240 and while we have seen a low of 0.8157, the pair has staged a modest rebound and is at 0.8212 at the time of writing.

With the ECB meeting in play tonight I will take profits on the position, however I leave my short EUR/USD trade in play, with the idea of reducing my EUR exposure.

Traders who feel tonight’s ECB meet will be dovish could look to lower stops on EUR/GBP to 0.8310 (just above the multi-month downtrend).

I feel there are upside risks to the ECB meet given traders have positioned themselves for fairly bearish action from the ECB and I concerned they will be disappointed.

I close the trade for a 28 point profit or 0.3% gain and will look at new positions after the ECB meeting.

EUR/GBP

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.