GBPJPY—bounce didn't disappoint

This pair's bounce didn't disappoint at all. When I last blogged on Friday, I had two longs, one from 134.44 and one from 133.80. I picked up a third long position from 135.90. This morning, I closed the 133.80 one for +300 pips and took partial profits on the one from 134.44 at +220 pips.

Resistance proved too tough at 137.38 and it has since fallen back. This price has now served as resistance twice in the last day and was also resistance on Fe. 25. My suspicion is that it will try again and probably get through to at least 137.91 which is 50% of the move down from Feb. 17.

I may add another long position now that it has pulled back to 136.64. This area was resistance on Friday so it should serve as support. Next support is 136.45, 135.73, 135.51, and 134.43. Resistance is at 137.38, 138.64, and 139.59.

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.