EURGBP—back and forth

I keep going long and short, back and forth, on this pair as it continues to send out conflicting signals. Currently, I'm long from .9080 and the last candle on the three-hour chart was bullish as could be. But the pair is approaching .9134, a point it fell back from last week. Just beyond that is .9150, a price it also rejected at the beginning of March and near the .9152/3 highs from the end of November. While the moves since that high look somewhat corrective, this pair isn't out of the woods until it solidly closes above .9150. As a result, I've already moved my stop to just better than breakeven.

Support is at .9045, .9000, .8982, .8920, and .8751. Resistance is at .9134, .9150/3, and .9216. Beyond that is the .9412 high from last October.

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.