Diary of a day trader: Why I'm still buying the pound

My call on the Cable — that’s what we currency traders call the pound-dollar — came off a treat last week. I hope some of you followed my call and bought in.

The trading system I use, Ichimoku, showed a support level for sterling of $1.32. We were way below there so I’d been opening quite a few buy positions.

It fell back initially but then Thursday’s interest rates vote came in and Bang! Sterling shot up as the monetary policy committee’s vote went from 2-7 in favour of a rate rise to 3-6.

The Cable got as far as $1.33 — jumping 170 pips in one day.

I was trading with no leverage so I had my stop losses really wide which meant that I had some nice profits. Since then I’ve been largely holding my positions but when it goes up I’m selling. We came down a touch yesterday as the new MPC member Jonathan Haskel made more dovish noises than the guy he replaced, Ian McCafferty, but we’re still holding above that $1.32 support point.

Longer term though, I’m still confident on the pound. The next two key support levels according to Ichimoku for the Cable are $1.343 and $1.351, so look out for those. With a bit of luck we’ll make some money on the way there.

Portfolio: £30,000

Year to date: +23.9%