The USD is trending downwards following the announcement that more QE may be on the cards. I had breakouts on Friday against the EUR, GBP and SGD. I am reluctant to trade against the EUR because I am already long EUR/GBP, and I am cautious of USD/SGD because the Singaporean central bank regularly intervenes in the currency (it seems to be letting the currency band go at the moment, but I have no idea whether this will last — should have traded early when the band was broken). That leaves GBP/USD, and the trade has the advantage of hedging my EUR/GBP position against a spurt in the GBP. If EUR keeps strengthening and USD keeps weakening I should make money on both trades, GBP having been basically flat for a while.
Technically there is a major resistance level in the way of this trend at 1.60 (just beyond one risk unit of profit), but given the weakness of the USD it is not an unreasonable bet that this will get breached. The breakout was on high volume and with good thrust through to 5pm. Trading 10-day breakouts was the best strategy last time this market had a prolonged trend (shown in the charts; recently the lack of trend has made all long strategies very poor performers but breakouts have made money since the market turned around in May). Correlation with my other open trades is low, including with EUR/GBP, as developments in EUR and USD have driven the GBP in recent months. Stop is at 1 ATR.