Tuesday, July 6, 2010

GBPUSD—weekly channel

I'm still long from 1.4918. Cable reached a July 2 high of 1.5230 and, like other pairs, faltered this morning (at 1.5207) when it seemed to be trying to get back to it. There's still a possibility of at least 1.5374 (the weekly downtrend line). After that, it could reach 1.55 or so, the April highs. Also on the weekly chart, it has climbed above the 20 EMA (currently 1.5079) which had capped it the weeks of 4/16, 4/30 and 6/25. The weekly chart doesn't show strong momentum (as represented by RSI) so anyone going long at this point needs to use tight stops.

Resistance is at 1.5374, 1.5523 and 1.5816. Support is at 1.5079, 1.4874, 1.4710, 1.4696, 1.4590 and 1.4550.

Here's the weekly chart. My trade doesn't show on it as I use a different charting package for weekly and monthly charts.

© 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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