Wednesday 7 September 2011

GBP/USD 7 SEPTEMBER 2011


GBP/USD
Price gave us the bullish cs formation we were waiting for yesterday, we traded it for a limit of 60 pips profit.

Price then went on to rally just shy of the 786 and gave us a bearish cs formation but the stop was over 100 pips so we couldn’t take that trade setup. The B low was taken out giving us a new A-B swing. We now have to wait for either a BF786 and a bullish cs formation to buy, or a 618/786 higher up in the AB swing and a bearish cs to sell.

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 all over 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:
Price gets down to the BF786 and then gives us a bullish cs formation we will enter long, stop below the cs formation- 50 pips max, entries will attract a 60 pip limit since it’s a shallow bounce.

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