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Daily Archives: October 4th, 2017

Yesterday, I felt that the contruction PMI would be a volatile event data following all the talk about Brexit.  It would be interesting to see how the construction industry is taking to the potential exodus of expats and investors of out the UK and back to Europe.

Just before the announcement, as usual, I put in my straddle trade with the following details: –

Stop if Offered at 1.3260, Spot at 1.3280, Stop if Bid at 1.3300

As it turned out the construction pmi came out weakest in the past 13 months at 48.1 versus expectations of 51.1.

Initially, GBP didn’t collapse, however, it did later trigger my stop if offered leg and it continued to do a very very slow decline in to the opening session of NY.

I decided to square the spot position at 1.3230 for a trading profit of 40bps.

Yesterday, I decided to reduce my risk exposure by selling two of the put options at 1.3230 for a small trading profit of 30bps.

I am still holding two more put options and hopefully, we will see a further downside to the GBPUSD.

Right now, it’s attemtpting to cross the 200DMA @ 4H chart at 1.3201 from the top, if it does, then, we should see a collapse in the GBPUSD, unfortunately, will my put option have enough time???