My picks for Trade of the Week (TOTW) have consisted largely of trade setups which materialized during the New York morning trading session. As FX Bootcamp's trader coach covering that session, I'm likely a bit biased toward that session spanning from 8:00 a.m. to 12:00 p.m. New York time, yet I've not deliberately sought to exclude opportunities for entering trades during the London session in my past TOTW posts. I always strive to conduct an objective review of all reasonable trade setups among the major currency pairs when considering options for the week's feature trade.
Having said that, in the interest of those readers who regularly trade during the European morning hours, I did give a bit more weight to London session trades while evaluating TOTW candidates for the 24-28 September trading week. As it turns out, I really didn't need to put extra emphasis on London this week. The one trade which clearly stood out to me happened to be a cable short during the hour prior to the London open on the last trading day of the week, month, and quarter.
The GBP/USD currency pair had been rising steadily from early August to the middle of September. That persistent uptrend stalled early last week in the 1.6265 area.
Currency traders seeking to sell cable at or near 1.6265 had multiple opportunities to do so during the hour prior to the open of the Friday 28 September London session. The daily R1 pivot point sitting just below 1.6265 supported the case for the entry, and two other pivot points -- the daily S2 and weekly M1 -- defined a logical profit target zone for a trade of some 130 pips.
Got your own pick for TOTW? Post it in the comment section!