Cable; where did i go wrong??

[mtb]

Hey guys,

I'm an absolute newbie and i did a sample trade last month which went totally wrong. BOE was increasing its interest rates by 25 points, which lead me to believe that GBP/USD will head up, i.e. GBP will gain against the USD. I put a trade in my demo account just before the accouncement, which came in as expected, but GBP lost its value and i lost around 70 pips in a matter of minutes. There were other US figures coming up within another 90 minutes which I was aware of, and also knew that the USD will gain again after those figures were released. Bottom line, i was only looking to cash on the interest rate announcement of BoE. Can any one explain where i went wrong??

Thanks
T

[ZenTrader]

Sometimes the market has already factored in such a move in interest rates, as you have probably witnessed now a weakening in the USD has led the gbp to new highs now approaching the level 2.00 a high that has not been witnessed for some time , look back on your charts.... I suggest that you need to look at technical indicators and not just rely on announcements. You need to understand trading just does not revolve around these such announcements alone. Often a move as you have experienced can lead to new enty points from a technical perspective.
Good luck with your learning experience..

[mtb]

Thanks ZenTrader. I'll keep a watch on TA as well.

[Habib]

OT:
Can somebody tell me how in the world one gets to be "on a distinguished road" with just two posts?
Sorry for this Off-Topic post, but I thought I would ask here as "mtb is on a distinguished road" already while he/she has only two posts to his/her credit. No offence to the member intended.

[swopejs]

The Central Banks don't give a damn about announcements - they move the markets however they like . . . what makes sense to you and me doesn't make a bit of difference to them.