Monday, March 29, 2010

GBPUSD—weekly chart

The weekly chart shows this pair dropped to just at tad below its uptrend line from 2009 to a low of 1.4798. The line is now at 1.4809. With the March low at 1.4783 and with this general price level being polarity on longer-term charts, this is obviously key support.

The pair has reached a high of 1.5020 today but there are layers of resistance from 1.5058 to 1.5145 and shorts from those levels may be worth taking depending on price and momentum action at that point.

Support is at 1.4990, 1.4943/61, 1.4886, 1.4829, 1.4798, 1.4785 (strong), 1.4754 (strong), 1.4704, 1.4533, 1.4437, and 1.4397. Resistance is at 1.5021, 1.5055/63, 1.5090 and 1.5145. Over 1.5090 would probably mean an attempt at 1.5376/82.

Here's the weekly 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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