Wednesday, February 24, 2010

EURGBP—didn't break support (yet)

Support held for this pair yesterday with a low of .8751, missing my stop from my long position (from .8699) by one pip. I added another long position at .8760 and have moved the stop on that one to breakeven. The rally, so far today, has reached the 50% retracement of the move down from yesterday's high with a high today of .8794. It has fallen off a bit from there and may yet break support. If it does break the .8742/50 price barrier, I will most likely go short.

Support is at .8750, .8684, .8642/58, and .8603. Resistance is at .8836/42, .8872/99, and .9028.

Here's the three-hour chart:

© 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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