GBPUSD—rallied past resistance

I'm still long from 1.5419 and 1.5602 and added another position early this morning at 1.5750 (stop is already at breakeven).

Now that the Cable has gotten above the strong resistance at 1.5651 and had a three-hour close above 1.5740, there's little in the way of a move to 1.5912 and possibly 1.6000. Just in case this doesn't happen, I took partial profits on my position from 1.5419 at +430 pips.

Support is 1.5740 and 1.5650. I will most likely add positions on a pullback.

Also, it looks as though the Swissy and Cable are finally diverging as I wrote about yesterday. This is more normal.

© 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.