GBPUSD—Nice drop

All my reasons for shorting yesterday at 1.5478 were confirmed with the drop down to a low of 1.5322 so far this morning. I have taken partial profits at +135 pips.

The pair has already achieved the price target from the triangle on the 30-minute chart that I shorted against yesterday. It will find good support at 1.5289/95 if it continues down to there. It broke its uptrend line from March at 1.5335 and as of now it's forming a small pennant on the 30-minute chart. This would normally hint at continuation so let's see.

Should it get down to the bottom of the triangle I may reverse but it will depend on really short-term price action and momentum.

Resistance is at 1.5335, 1.5427, 1.5460, 1.5499, 1.5509/26 (strong), and 1.5708. Support is at 1.5296, 1.5192, 1.5130, 1.4971 and 1.4798.

Here's the 30-minute 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.