Wednesday, April 14, 2010

GBPUSD—still below 1.5486

Lots of chatter out there about how this pair might push up to 1.5500. As my analysis yesterday made clear, there is room for a move as far as 1.5681 to 1.5763. However, it's still hovering below its 1.5486 high from earlier this week. With the drop down to a low of 1.5350 yesterday a long looked more attractive and I did go long at 1.5371. It's reached a high of 1.5454 this morning but has since fallen back a bit. One can make a case that it's consolidating within a triangle on the three-hour chart.

Support is at 1.5376, 1.5337 and 1.5130. Resistance is at 1.5454, 1.5486, 1.5576, and 1.5681. Exceeding 1.5681 would give it a shot at 1.5763.

Here's the three-our 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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