GBPJPY—stalling

I wrote last week that I'd shorted the Guppy after it touched 134.26. I entered two positions at 1.3402 and closed one of them on Friday when it seemed as though it was stalling (133.60 for +42 pips). The pair is stubbornly staying above 132.85 and there's a zone of support down to 132.00. Until it breaks below that there's not a lot to say. Below 132.00 is support at 130.01. If it does begin to break down, it's evidence that the move above the three-hour upward channel was a fake-out and the bottom of the channel is a potential target.

If it can resume its rally, a successful close over 134.26 would put the pair on track to resistance at 135.22, 136.24, and 137.79. After that there is little in the way of resistance until 141.19 (confluence) and then price resistance at 145.98, last April's high.

Here's the three-hour chart:












© Dianne Fecteau, 2011. 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.