Tuesday, November 16, 2010

GBPJPY—narrow range at support

The pair has moved in a narrow range of 1.3291 to 1.3380 since Friday and the low is right on a fib confluence level and breakout level. I've gone long at 133.09 with possible price targets of 1.3506 and 1.3779. Nearby resistance is 1.3375 so I'll probably take some profits if it gets to that point. This pair doesn't like hanging around in ranges so I expect any move (up or down) to be swift. Below 132.75, I'd get antsy about being long and possibly reverse.

Here's the three-hour 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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