I'm long from 1.5419 and took partial profits at +115 pips today as the pair spiked to 1.5566. After its little rally last week to a high of 1.5646 on Tuesday, the pair is flopping around trying to find some direction. On the monthly chart (not shown), Cable may be in the C wave of an ABC correction which could carry it quite a bit higher into the 1.60's or in the D leg of a symmetrical triangle which might take it down to 1.4578 (this is a monthly basis so don't get too excited) before the final move up to E. Then you'd see a very nice drop.
There is strong resistance at 1.5651 which is the downward channel resistance on the weekly chart as well as the weekly 20 EMA.
Here's the weekly chart. My trades don't show on the longer term charts because I use a different charting package.
© 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.