Thursday, 13 October 2011

GBP/USD 13 OCTOBER 2011



GBP/USD
No addition short trade setup yesterday, got stopped out at zero with previous days trade, trade was in 80 pips hence stop at zero. Price rallied on to take out the A high, doing a reversal on the 1H Chart.

FOR TODAY:
We have a new AB swing, with the A down at 5270, and the B at 5797. We can only sell after price hits the BF786 and gives us a bearish cs formation.
Long trades will only be considered once price gets down to the 618/786, which is very far away right now.

SHORT: Will be going short only IF:
Price rallies and hits the BF786 and then gives us a bearsh cs formation. Trade this for 80 pips since it’s a shallow bounce. Stops above the highs of the cs, max 50 pips.

LONG: Will be going long today only IF:
We get down to the 618/786 and then get a bullish cs formation. Trade the 618 cs formation for 80 pips and the786 entry will be a ST to the BF786. Stop below the cs formation, 50 pips max.

If we don’t get the setup we are looking for then we don’t trade.

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