GBPUSD—update

I shorted at 1.5159 and have moved my stop to breakeven. If you look at the 3-hour chart below you can see that if the drop continues, the current candle, when it closes, will complete an evening star formation where the first candle is bullish, the second is a doji, and the third closes deeply within the body of the first candle. This is not confirmed until this three-hour candle closes. However, it's a positive sign if you're short as I am.

Support is at 1.5090, 1.5044, 1.4990, 1.4901, and 1.4865. Resistance is at 1.5156 (mild), 1.5187, 1.5382, and 1.5576.

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.