Wednesday, August 4, 2010

GBPUSD—hovering below.618 retracement

I went short at 1.5936. The stop is 10 pips better than breakeven.

Cable hasn't exceeded yesterday's high of 1.5958 which was just ten pips shy of the .618 retracement of the move down from 1.7043 to 1.4228. Sellers do seem to have come in but the price hasn't exactly plunged downwards. The low so far has been only 1.5881. We'll have to wait and see on this one.

The next resistance level would be the round number of 1.6000 and then the Feb. '10 high of 1.6070. Support is at 1.5892, 1.5872, 1.5701, and 1.5552.

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.

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