Monday, February 16, 2009

Pound Support line

A couple of hours back I wrote about the support line for Euro. At the very same time a similar support line for pound too was into play. Have a look

Presence of clear support lines for both the currencies meant that there was greater probability that support would hold out in general. We've now seen around 6 hours of price action after test of support, infact a double dip test if you look more clearly & it seems that there are buyers out in the market at these price levels which is supporting the price. Look to buy on dips, just like in this pic above & keep a stop about 50-80 pips below support.

I would look to book profits when price action reaches near the resistance line joining the swing highs on 9th & 13th of feb.