Support & Resistance
Big Resistance on GBP/USD
January 19, 2010
FX Monte
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Chart Analysis
As we look at the EUR 240 it is visually clear that there is a down trend. This is a beautiful opportunity to consistently take trades off of past support now becoming resistance.
No matter what your strategy always know where the resistance or support is on your chart. This will benefit you tremendously because it will keep you out of losing trades and possibly assist you with winning ones.
Analysis
Technical analysis is a powerful tool when it comes to trading. Charts show us day in and out that there are steady patterns that they repeat. Our job is to determine what pattern is being repeated and then determine direction. Direction is the key but also where to place your stop loss. If a stop loss is placed loosely and not behind a major position of support or resistance then you could be stopped out. And most likely you will be stopped out and then the market will go your direction.
Market Forecast
19 Tuesday
January 2010
| EUR/UD | GBP/USD | USD/JPY | USD/CHF | USD/CAD | AUD/USD | NZS/USD | |
|---|---|---|---|---|---|---|---|
| Resistance 3 | 1.4397 | 1.6377 | 91.22 | 1.0420 | 1.0313 | .9320 | .7438 |
| Resistance 2 | 1.4392 | 1.6410 | 91.18 | 1.0384 | 1.0292 | .9318 | .7435 |
| Resistance 1 | 1.4386 | 1.6515 | 91.05 | 1.0291 | 1.0277 | .9289 | .7399 |
| Current Price | 1.4293 | 1.6352 | 91.10 | 1.0329 | 1.0330 | .9213 | .7380 |
| Support 1 | 1.4365 | 1.6210 | 90.61 | 1.0249 | 1.0239 | .9203 | .7358 |
| Support 2 | 1.4334 | 1.6062 | 90.59 | 1.0244 | 1.0223 | .9173 | .7350 |
| Support 3 | 1.4263 | 1.5895 | 90.23 | 1.0219 | 1.0205 | .9169 | .7328 |
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