EURGBP—hangin' in for now

After this pair's outstanding rise yesterday, it is taking a bit of a breather although it hasn't dropped back very much. I'm still long from .8760 and profit stopped at .8960 so regardless of what happens, I'm in good shape.

Yesterday's high was .9150 and this proved stiff resistance. The high so far today has been .9093. If it approaches it again, I'd bet there will be short selling which may drive it back. Should it make it through, however, .9150 will still be difficult to overcome. All I'm doing at this point is moving my stop. If it breaks below .9000, price behavior will determine whether it's a buy on a dip or a short on a break.

Resistance is at .9100, .9150, .9240, and .9412. Support is at .9000, .8968, and .8890.

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.