Closing EUR/GBP Short for +600 pips

Back in December 2008, I opened a short trade on EUR/GBP because it was finishing a blow-off climax top. I was a bit early, and suffered early drawdowns, but I held tight. I'm closing the trade today at .8650 for a +600 pip gain.

You can see that price has retraced nicely after the climax. However, price action has been choppy, and not in the typical 5-wave pattern I like to see for an extended move. Instead, it looks more like a 3-wave correction. Price is currently sitting near trendline support as well as the 38.2% fib. It looks to me like the GBP could be setting up for another drop (EUR/GBP rally), so I'm taking my nice profit while it's there.

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