GBPJPY—be flexible

The remainder of my last long stopped136.20 profit-stopped out early this morning at 136.67. I then shorted the pair at 136.58 based on the fact that it faltered three times near the 138 level. As I wrote last week, 137.91 was 50% of the move down from February 17 so it's not surprising that capped it, at least for the moment. The moves, in general, look somewhat corrective so it's possible the pair is getting ready to resume its downtrend. For now, though, it's sitting at support of 136.46. I've moved my stop to breakeven.

Support is at 135.52/45, 134.93, 134.00 and 133.92. Resistance is at 137.20, 138.09, 139.59, and 141.68.

This pair has been tricky lately (some would say it's always tricky) but the way to trade it is to stay flexible and be willing to go both long and short. Some traders have difficulty doing that but if they do it's a good opportunity to ask why.

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.