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Resistance is the level over which the forex’s rate finds it hard to go. When these spots are already identified, it may be possible to gain by positioning trades in the area exactly where the currency’s price is probably going to reverse.
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In the event you believe that the base currency will probably weaken in opposition to the counter forex, you market (or “go short”) the currency pair. So, such as, when you feel that the British pound will reinforce versus the US dollar, you purchase GBP/USD. Alternatively, if you're thinking that the British pound will weaken from the US dollar, you sell GBP/USD.
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