GBPUSD—3-hour chart

I'm still short in this pair from 1.5871. I just added another small short position at 1.5677. Currently, you can see on the three-hour chart that the pair is coiling in a constricting range. A break upward, which looks increasingly unlikely would target 1.5765, first, and then back up to the psychological 1.60. A break downward would target 1.5597 and then 1.5535 (the recent low), and perhaps down to 1.5354. The RSI is nudging below its trend line on the three-hour chart. If price follows, then perhaps it will depart this sludge and become interesting.

Here's the 3-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.