Monday, July 26, 2010

GBPUSD—Weekly Chart

Cable tested the 20 EMA last week and it held as support. Currently the 20 EMA is at 1.5158. Offsetting this bit of happy news is that it is nudging a downtrend line from late 2009 and is also encountering resistance set by the April highs in the 1.5522 region. 1.5559 is also the daily 200 SMA. On the downside, there’s an uptrend line coming in from early 2009 at 1.4364. If the pair bounces between these two points one could get off some nice trades in the near term, depending on price behavior on the shorter term charts.

Here’s the weekly 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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