Tuesday, 26 July 2011

GBP/USD 26 JULY 2011


GBP/USD
Price never hit the BF786 followed by a bearish cs formation, so no trade setup on Sterling yesterday.

Price fell a bit and then went sideways for the rest of the day and rallied during the Asian session. We are at the B high threatening to take it out. If we take it out we will have a new AB swing in play. We then have to wait for a 618/786 to long and a BF786 to short.

SHORT: WILL ONLY BE GOING SHORT IF:
We get a bearish cs formation from current levels. This will be a 60 pip limit since it’s a shallow bounce. Watch out that we get a fall and then a bullish cs formation, if this happens reverse and go long.

LONG: WILL ONLY BE GOING LONG TODAY IF:
Price gives us a bearish cs formation at these highs and then suddenly reverses and forms a bullish cs formation. This will be the signal to go long, else if price falls down to the 618/786 and gives us a bullish cs formation, trade the 618 for 60 pips and the 786 as a PT to the BF786.

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