Friday, March 19, 2010

GBPUSD—dropped below channel

The remainder of my long position from 1.5138 profit stopped out at 1.5226 for +88 pips.

The pair has dropped below its channel, touching 1.5128 as a low. Currently, it looks as though it's trying to stage a rally and a short play may present itself if it can get back to the channel line at 1.5173. Should it manage to clear that and get back to the top of the channel it would be a really nice short.

Support is at 1.5128, 1.5087, 1.4978, and 1.4873. Resistance is at 1.5173, 1.5260, 1.5276, and 1.5382.

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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