GBPUSD—lacks pep

The cable is drifting slowly higher but it lacks pep to say the least. Tuesday's high was 1.5434; today's high is 1.5474. You can't bunt it out of the park. It has fallen back from there this morning. The pair has now broken two short-term uptrend lines and the second break was accompanied by a breaking of the RSI uptrend line. If this third line breaks then it shows real weakness as it will also drop below the low of the hammer a couple of candles ago on the hourly chart. Even if it does this, though, there is still support at 1.5333. Breaking that level would probably cause me to short the pair.

My long from 1.5358 is profit-stopped although only somewhat better than breakeven.

Resistance is at 1.5434, 1.5474, 1.5453, and 1.5523. Support is at 1.5374, 1.5333, 1.5291, and 1.5192.

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.