Thursday, October 14, 2010

FOREX DOJO TRADE # 26

Last night went as planned a nice bounce from 129.60 reaching 130.30 netted 60 pips.

Tonight I feel that bears will once again take control from these levels so my strategy is to sell GBP/JPY around 130.30 - 130.50 with a TP 129.60 - 129.80 and SL 130.80 - 131.00.  It looks to me like resistance around the 130.30 region will hold due to bullish momentum easing. I don't anticipate a drop below 129.50 so taking profit ahead of that level and/or keeping a trail of 40 - 50 pips is a good idea.

Tonight's trade is strictly a price action & trend line based strategy. We are currently testing 130.30 resistance and there does not seem to be enough momentum from here to reach the next resistance levels at 131.00. Therefore I will sell.

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