GBPUSD—weak

My long from 1.5358 stopped out at +2 pips above breakeven, not a huge surprise given this pair's listless attitude. The pair is weak. It broke below good support of 1.5333 reaching a low yesterday of 1.5321 and of 1.5296 so far this morning. That's not a lot below but it is below. I shorted earlier at 1.5362 and just took partial profits at +53 pips. There's potential for this pair to drop to below 1.49 but it's going to have to break some good support before it does that.

You can see on the hourly chart how it keeps breaking uptrend lines. Otherwise the chart is remarkable only for the indecision shown by the upper and lower shadows on the candles. I wish they'd hurry up and get their May 6 general election over with. Perhaps it will help traders decide on a direction for this pair.

Resistance is at 1.5333, 1.5398, 1.5474, and 1.5523. Support is at 1.5291, 1.5130, 1.4971 and 1.4798.

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.