Friday, 14 October 2011

GBP/USD 14 OCTOBER 2011



GBP/USD
No trade setup on GBP yesterday. Price never retraced to the BF786 yesterday morning, it did however give us a BF786 and a bearish cs formation late last night, outside our trading hours.

FOR TODAY:
We are still in the AB swing, today we have a DABF786 trading day. We are looking for a short entry only after a bearish cs formation from current levels since price already hit the BF786.
Long trades will only be considered once price gets down to yesterdays support and then gives us a bullish cs formation, showing that the support level is holding, else lower down at the 618/786, which is very far away right now.

SHORT: Will be going short only IF:
We have a DABF786 trading day, we are looking for price to fall, so we are looking to sell rallies after bearish cs formations, we currently have a bit of a rally setting up, if we get a bearish cs formation from current levels we will go short, stop above the cs formation, limits can be 80-100 pips.

LONG: Will be going long today only IF:
We get down to the 5665 price support and we get a bullish cs formation, this will tell us that price is holding and probably now going to rally, a DD entry formation. Trade this for 100 pips profit, stop below the cs formation, else if we get down to the 618/786 and then get a bullish cs formation. Trade the 618 cs formation for 80-100 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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