GBPCHF - Hedging Strategy of the Week (Profit Potential: 600 pips)

Currency Pair: GBPCHF

Entry Zone: Go both long and short at the market if the price is at any level within the 2.42-2.48 range

Protective Stop: Long stop below 2.3750 and short stop above 2.5250

Profit Target: Long Target at 2.48 and Short Target at 2.42

Profit Potential: 600 pips (excluding transaction costs and slippage)

For more information on FXCM hedging strategies please visit http://www.fxcm.com/hedging.jsp

The most effective way to capitalize on currencies pairs that are trapped in tight ranges is through the use of hedging. The hedging feature is currently available on all accounts using FXCM’s No Dealing Desk service. The GBPCHF is our primary target for hedging in the week ahead, with clear range-bound trade and concrete support and resistance levels. To hedge, go both long and short at the market if price stays within the above Hedging Zone. Take profits at R1 for longs and at S1 for shorts, covering losses above R2 or below S2.

HEDGING RADAR – Find More Hedging Opportunities

· Entry Zone -> Go both long and short at the market if the currency is at any level within the Hedging Zone.

· Profit Taking ->Target for the long order is the top of the entry zone, for the short order is the bottom of the entry zone.

· Stop Levels are Key Support and Resistance Points -> Place the actual stops a few pips above the higher level and a few pips below the lower level. The break of these levels signals that the ranges have been broken and the hedging strategy should no longer be implemented.

· The lower the Average True Range, the Less Risky the Currency is for Hedging.

More Low Risk Hedging Opportunities
Currency	% ATR Rank	Stop for Long	Hedging Zone		Stop for Short	Profit Range
EURCHF	|||||| 0.35%	1.6289	1.6420	1.6686	1.6817	266 pips
EURGBP	||||||||| 0.40%	0.6550	0.6670	0.6870	0.7020	200 pips
GBPCHF	|||||||||||| 0.50%	2.3750	2.4200	2.4800	2.5250	600 pips
Medium Risk Hedging Opportunities
Currency	% ATR Rank	Stop for Long	Hedging Zone		Stop for Short	Profit Range
EURUSD	|||||||||||| 0.53%	1.3450	1.3650	1.3850	1.4050	200 pips
CHFJPY	|||||||||||| 0.63%	95.00	98.00	101.00	104.00	300 pips
USDCAD	||||||||||||| 0.74%	1.0000	1.0300	1.0600	1.0900	300 pips