Monday, March 22, 2010


Following the positive divergence on the hourly chart on Friday, the pair has managed a rally which so far has only reached a high of 1.5013. The pair has also formed what's known as an ascending triangle from which a breakout is usually upward. However, GBPUSD is generally weak. My short from Friday at 1.5153 is still on and is profit stopped at 1.5052.

If this rally can get any legs, one would expect to see the pair break 1.5052 in a sassy, confident fashion. I'm a bit skeptical but will follow the market and reverse, if need be, at that point.

Resistance is at 1.5013, 1.5033, 1.5120, 1.5153 (strong), 1.5254, 1.5328, and 1.5382. Support is at 1.4964, 1.4932, 1.4873, 1.4853 (strong), 1.4873 and 1.4814.

Here's the one-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.

No comments:

Post a Comment