Monday, 22 August 2011

GBP/USD 22 AUGUST 2011


GBP/USD
No entry on GBP on Friday.

Price rallied on Friday taking out the B high but not closing above. We now have a new AB swing in play, price fell and bounced off the 786. We are in buy territory.  We are looking for price to rally to the BF786, if we get a bearish cs there we will short down to the A low.

SHORT: WILL ONLY BE GOING SHORT IF:
We get a clear bearish cs formation after we reach the BF786. PT this to the A low since we had a 786 prior.

LONG: WILL ONLY BE GOING LONG TODAY IF:
We get a bullish cs at current levels, trade it to the BF786. Exit on a bearish cs formation or place stop at zero once we hit 50 pips – only because there is a chance that price can give us a small rally and then go bearish.

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