Thursday, 15 September 2011

GBP/USD 15 SEPTEMBER 2011



GBP/USD
We had a bullish cs formation at the UK open yesterday as per our forecast, but I didn’t take the trade.

Price gave us the B low yesterday, so now we have the A up at 6082 and the B down at 5706. We now have to wait for a retracement to the 618/786 and then a bearish cs formation for a short entry.

Long trades can be considered since we have already hit the BF786 a few hours ago, we will wait and see if we get a test of that level at the opening of the UK session.

If we don’t get the cs formations we are looking for at the fib levels then we don’t trade.

SHORT: WILL ONLY BE GOING SHORT IF:
We need to wait for price to rally to the 618/786 and give us a bearish cs formation. Trade the 618 for 60 pips and the 786 will be a ST to the BF786. Stops are above the cs formations, max 50 pips.

LONG: WILL ONLY BE GOING LONG TODAY IF:
We have already hit the BF786 during the Asian session. We are looking for a test of that level during the UK session and a bullish cs formation thereafter. There are two possibilities here for a limit:
1.       Trade the entry for 60 pips since it’s a shallow bounce, with stops below the low of the cs formation – 50 pips max.
2.       Trade it as a ST since we have an indecision cs formation on the daily chart, which might be a sign that we are heading deeper into the swing – 786-6000.




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