Wednesday, March 31, 2010

GBPUSD—at resistance

GBPUSD is up against a downtrend line coming in from the February high of 1.6070. On the hourly chart, RSI is showing an overbought reading but there's negative divergence. It could be worth a short with very tight stops but offsetting it somewhat is the bullish behavior—good strong candles—and the healthy bounce off the long-term uptrend line after the 1.4798 low. If it makes it through then 1.5314 will probably be the next key resistance.

Support is at 1.5044, 1.4990, 1.4901, and 1.4865. Resistance is at 1.5187, 1.5382, and 1.5576.

Here's the daily 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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