Tuesday, April 6, 2010

EURGBP—possible base

EURGBP may have found a base at .8810, yesterday's low. That low is the bottom of its channel, a .618 fib retracement level (.9154 - .8603), and a prior support zone so I took a small long position on the small bounce up this morning. There's also positive divergence on the 3-hour chart. Basically, though, this position is made palatable by the tight stop it allows me to have. Remember, the pair is in an overall downtrend and Euro is weak—of course it's possible the pound is weaker.

Support is at .8795, .8751, .8658, and .8603. Resistance is at .8860, .8895, .8945, .9026, and .9058.

Here's the 3-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.

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