Thursday, February 24, 2011

GBPUSD—approaching support

Cable hasn't closed beneath 1.61 since the 14th and its low has stayed above 1.61 since last Friday (although it was within two pips of it yesterday) so as it approaches the support of price and the two uptrend lines from January, I might look at a buy. The stop can be tight. The potential targets are 1.6276/83, 1.6300, and 1.6465.

A close below 1.6100 suggests support at 1.6033, 1.6008/00, 1.5965/44, 1.5832/10 and 1.5747.

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.

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