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History repeated itself, it was a similar situation like my previous EURUSD trade where the price touched the stop and reversed. There was a false break of the channel towards the upside the price immediately reversed and fell nearly 200 pips during the day. It was a highly volatile day with big upper and lower shadows. Anyways as it was not a big loss and it didn’t completely wipe out my profit from the GBPUSD trade.

Trading result : Sold EUR/USD at market at 1.4287, SL at 1.4350 and Take profit at 1.4180. Stopped out at 1.4250. loss 1.07%.

Date : 3/08/2011

While I was checking the charts at 4hour candle close, I noticed an excellent descending channel on EUR/USD pair. While I was watching EU falling like a rock, I finally pulled the triggered. I know I was little late, but what if the trade goes my way. Also, EURUSD is getting an aggressive sell off ( almost 50 pips off daily highs ) GBPUSD is still holding really well.

Here is the chart for the trade :

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I am taking it as a half position trade as its against the current momentum. I have placed my stop just above the channel high.

Trade Idea: Sold EUR/USD at market at 1.4287, SL at 1.4350 and Take profit at 1.4180.