GBPJPY—waiting for a rally

This pair is taking a pounding and even after yesterday's slide, doesn't seem to be able to overcome the negative sentiment. I'm still partially short from 136.03 and entered another short yesterday at 133.86. The pair is rallying slightly so that latter one may be taken out soon since the profit stop is at 133.46. I'd welcome a bit of a rally as it would provide a nice short entry. There's some bullish divergence on the three-hour chart.

Resistance is at 133.43, 134.04, 134.65, and 135.52. Support is at 132.57, 132.03, 131.47 and 129.63.

Since I have a profit objective for this pair down into the 130.00 area, I believe there will be more weakness. So it's the same old, same old. Sell rallies.

Here's the three-hour chart (I have arrows pointing to my trades):























© 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.