Wednesday, March 24, 2010

GBPJPY—broke through resistance

My short from 135.81 stopped out at breakeven and the pair has been in an uptrend since then. I tried a small long at 135.98 which has risen to a high of 137.14 this morning where it seems to be battling a very short-term resistance at the downtrend line coming in from March 17. I took some partial profits at 136.70 for +72 pips. To be honest, I didn't think it would make it through the relatively tough resistance at 136.92. Now, though, it's at an even tougher point as it tries to approach 137.50. If it can make it through here and stay above 136.92, I may add to my long position. If not, I'll probably reverse.

Support is at 136.92, 136.55, 135.19, 134.53 (strong), 133.93, and 132.03. Resistance is at 137.14, 137.50, 138.52, and 139.37.

Here's the hourly 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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