GBP/USD 21 OCTOBER 2011

GBP/USD

Price gave us the bearish cs formation we were looking for, entered at  5766, limited out for 76 pips profit. Price then gave us a bullish cs formation just shy of the BF786. We couldn’t take that trade.

FOR TODAY:

Today we are looking for a bearish cs formation to sell into, we have bounced off the 86 during Asia, so a test of that level and a bearish cs formation will constitute a short trade setup. Else a test of the yesterdays lows or the BF786 a and a bullish cs formation will initiate a long trade setup.

SHORT: Will be going short only IF:

We get a test of the Asian highs and a bearish sc formation, even higher up inside the A high, trade to the BF786, stop above the high max 50 pips.

LONG: Will be going long today only IF:

We get down to yesterdays lows, or even the BF786 and then get a bullish cs formation, trade this as a ST to the A high since we would have already have had an 86 prior. This entry will be giving us heads up that price is heading for the A high at 5851. But if we get a clear bearish cs formation higher up, exit the trade to be safe.

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