GBPUSD—rallying

What was left of my original short at 1.5478 profit-stopped at +168 pips. The remainder of the short from 1.5267 profit-stopped at +20 pips.

In the rally off yesterday's low of 1.5126 the pair reached a high so far today of 1.5391 from which it has since dropped back to 1.5313. Prior resistance was at 1.5335 and 1.5360 and there was a downtrend line coming in at that level so it's no surprise it would back off to regroup. However the pair has broken a steep uptrend line in doing so and has also broken the RSI uptrend line. It's possible it will return to that short uptrend line at 1.5365 and turn down again. However, it if successfully clears it then 1.5509 is a definite possibility but look for faltering around 1.5500.

Resistance is at 1.5365, 1. 5391, 1.5427, 1.5460, 1.5509/26 (strong), and 1.5708. Support is at 1.5313, 1.5222, 1.5154 (about 50% of the 1.4785 to 1.5523 gain) , 1.5126, 1.4971, 1.4798 and 1.4692.

I can't upload the chart for some reason but take a look at 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.