Tuesday, August 3, 2010

GBPUSD—at .618 retracement

With a high of 1.5958, cable has almost reached its .618 retracement of the move down from 1.7043 to 1.4228 (1.5968). Sellers will come in here so a small short might be in order. The steep level of ascent will be difficult to maintain.

The next resistance level would be the round number of 1.6000 and then the Feb. '10 high of 1.6070. Support is at 1.5872, 1.5701, and 1.5552.

Here's the daily 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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