EURGBP—correcting

EURGBP is approaching the .8500 resistance which is the downward trend line from October. As I blogged yesterday, November's monthly chart closed with a completed evening star pattern which formed near price resistance—the downtrend line from 2008. This is bearish and .8500 is a short opportunity as long as momentum doesn't increase. There is positive divergence with RSI which is of some concern. If it closes above .8500 on a daily basis, then the next resistance is .8543 (50%) and .8595 (fib confluence and 11/22 high).

Support is at .8390 (9/21 and today's low), .8350/35, .8204, .8068 and .7856.

Here's the daily 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.