Tuesday, 16 August 2011

GBP/USD 16 AUGUST 2011


GBP/USD
We lost 50 pips yesterday on the GBP trade, we had a bearish cs formation at the 86, but price reversed and rallied to take out the A high doing a reversal on the 1h chart.

Price went on to take out the A high on the 1h chart doing the reversal process on this timeframe. We now have to wait for a BF786 and a bearish cs to short, or price has to hit the 618/786 and then a bullish cs formation for a long trade setup.

On the 4h chart we have price at the BF786, and since we have a 786 prior, we can expect that price falls down to the A low, some 400 pips away – bear this in mind if we get a BF786 on the 1h chart.

SHORT: WILL ONLY BE GOING SHORT IF:
We get a clear bearish cs formation after we reach the BF786. Limit out at either 100 pips, or PT down to the A low on the 4h chart, REMEMBER this will take several days to get there though.

LONG: WILL ONLY BE GOING LONG TODAY IF:
Price falls down to the 618/786 and gives us a bullish cs formation. Trade the 618 for 70 pips and the 786 will be a PT to the BF786. Stops below the cs formation, max 50 pip stops.

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