Cable is continuing its bull flag on the daily chart and even though there are some conflicting signals I'm trading it that way for now. I made this decision within the larger context of the monthly chart's symmetrical triangle which has the potential for higher prices before it drops down again. The pair broke through some good resistance in the 1.54 to 1.55 area before touching 1.5533. It then retraced to 1.5377, almost 50% of the last leg up of 1.5297 to 1.5533. There it seemed to base, near a more significant .382 retracement.
I just bought at 1.5433.
The 1.5998 August 6th high is seen as the end of a corrective move so I don't expect it to get above that. Other targets, though, take it to the 1.60/1.61 price zone. Meanwhile, resistance is still above at 1.5474/88 (the daily 50 and 20 SMA), 1.5500, 1.5533, and 1.5600. Support is at 1.5400, 1.5377, 1.5304/5297, 1.5235, and 1.5132.
I'm having trouble getting the chart in again today so I'll try again after rebooting.
© 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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