Tuesday, 6 September 2011

GBP/USD 6 SEPTEMBER 2011


GBP/USD
No trade setup on GBP yesterday.

Price never gave us the bullish cs formation we were looking for yesterday, it just fell and took out the B low giving us a new AB swing (A-6252, B-6060).
We now have to wait for a rally to the  618/786 and a bearish cs formation for a short trade setup, or a bullish cs formation after the BF786.

If price continues down and takes out the B low then we have a new AB swing in play and we have to wait for conditions to setup again.

SHORT: WILL ONLY BE GOING SHORT IF:
Price rallies to the 618/786 and gives us a bearish cs formation. Trade the 618 for 60 pips and the 786 will be a PT to the BF786. Stops are above the cs formations, max 50 pips.

LONG: WILL ONLY BE GOING LONG TODAY IF:
We are very close to BF786 territory, if price reaches that level and then gives us a bullish cs formation we will enter long, stop below the cs formation- 50 pips max, limits will attract a 60 pip limit since it’s a shallow bounce.

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