Has the GBP reached its resistance?

Trading Discussion Currencies
1

Hi Guys,

Hope everyone is enjoying the seasonal festivities and taking the opportunity to re-assess their trading strategies!

I have taken the afternoon to have a look at the Cable and getting the impression that although we have seen some decent fluctations that it has now reached its resistance level and might be wise to go short on it.

Attached is the chart I’ve been looking at and would love to know what your take on the coming days might bring.

I am new to ForEx but have over the course of the past weeks been successful in my demo account and don’t want to get too comfortable in dealing paper trades.

Thanks,

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2

I’m assuming those are bollinger bands … ditch them, they are useless. Draw your support and resistance on the daily and if price breaks the current resistance, then you’ll be looking at 1.66 on the upside. If it can’t penetrate the resistance, it might fall and try again … or fall down to 1.58. This is what forex is about … you just need to react when you get a signal it’s going up or down (based on a strategy that has a high probability of materialising) …

3

Yes its at resistance. 1.63xx fail to break for the 3rd time.

4

What kind of indicators do you use, guys? I see strong MACD divergence on daily chart (therefore, I’m thinking about following it).

“A banker is a fellow who lends you his umbrella when the sun is shining, but wants it back the minute it begins to rain.”
-Mark Twain.

5

Wow, wow,wow…why so much hate for Bollinger Bands? :slight_smile:

“A banker is a fellow who lends you his umbrella when the sun is shining, but wants it back the minute it begins to rain.”
-Mark Twain.

6

Ask yourself how the indicator is calculated and you’ll find that as well as lagging, it’s based on what price did and banded on that. It’s useless, in my early days I thought it was the best thing ever together with moving averages then I realised price s&r was all I needed… After some painful losses

7

No comment…

“A banker is a fellow who lends you his umbrella when the sun is shining, but wants it back the minute it begins to rain.”
-Mark Twain.

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8

There are some great entries popping up on the GBP/USD so far today. 30 sec, 5 min and 30 min charts all show good potential. Put an entry on at 10.55 at 1.60331, letting it run for now.

30 sec gbp.jpg700×289 23.8 KB

9

pulled out at 1.60211

10

I was short from 1.6412 today (closed at 1.6177). Maybe bearishness will continue after pullback.

“A banker is a fellow who lends you his umbrella when the sun is shining, but wants it back the minute it begins to rain.”
-Mark Twain.

11

There is a lot of data coming out of US this afternoon. Might have an impact