Friday, February 26, 2010

EURGBP—can it keep climbing?

I have two positions open. One is from .8760 and on which I just took partial profits for +146 pips. The other is from .8883 which was a breakout buy after the pair broke through its tough resistance yesterday in the .8850 range. The stop is at breakeven on that trade. When the pair broke past .8865 yesterday, it blew past the .618 retracement of the most recent decline from the January .9028 high.

The pair has reached a high of .8921 this morning. Now it has to break through the psychological .9000. If it can do this, I have targets up to .9180 and it's possible it could reach to .9220.

Support is at .8902, .8862/50, .8833 and .8751. Further down are .8690, .8665, and .8603. Resistance is at .8988, .9000, .9028, .9053, .9124, and .9220

Notice the last completed candle on the three-hour chart—it encompasses four (and almost the fifth) of the prior candles. The bearish divergence is also troubling.

© Dianne Fecteau, 2010. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.

My purpose in writing this blog is to show you how one trader, me, makes trading decisions and survives while trading Forex. One of the biggest problems I had when I first started trading was trying to apply the “rules” to actual trades. Another was the psychology—limiting losses and letting profits run. If you study my blog, you’ll see how I deal with both those issues. So my writings are not trade recommendations but rather educational in purpose. You have to decide on your own approach to trading. Remember that trading is risky.

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