Thursday, July 8, 2010

GBPUSD—trying to rally

My position from 1.4918 profit stopped at +194 pips. I bought again at 1.5131 and have moved the stop to breakeven.

Today saw quite a steep pullback for cable from a high of 1.5241 this morning down to a low of 1.5103. It's not quite as low as yesterday's 1.5081 that barely confirmed the double top of 1.5230/27 but it causes one to question just how strong this uptrend is. Below 1.5081 would most likely be interpreted as the end of it. The logical price target would be 1.4932. The pair is still barely above the 20 EMA on the weekly chart that capped the pair the weeks of 4/16, 4/30 and 6/25. What a cliff hanger!

Resistance is at 1.5241, 1.5374, 1.5523 and 1.5816. Support is at 1.5081, 1.5037, 1.4932, 1.4874, 1.4710, 1.4696, 1.4590 and 1.4550.

Here's the one-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.

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