GBPUSD—rallying

My short from 1.5168 stopped out 1.5207 for -39 pips. The pair is doing well, getting through the downtrend line from the February high of 1.6070. It may be heading back to the former high of 1.5382, where it will encounter formidable resistance, both from the March 17 high and from fib confluence. It reached a high of 1.5248 so far this morning and has some headwinds from a former speed line. While it has retreated a bit, it seems to be hanging around waiting for another try. If it could pull back a little more it might be a long (or one could wait for a break of 1.5247) However, this is a holiday market so caution is warrented.

Support is at 1.5182, 1.5128, 1.5044, 1.4990, 1.4901, and 1.4865. Resistance is at 1.5247/56, 1.5314/40, 1. 5382 (strong), 1.5412, 1.5576, 1.5708, and 1.5814.

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.