Tuesday, 4 October 2011

GBP/USD 4 OCTOBER 2011



GBP/USD
Price gave us the “bearish cs formation after a rally” that we were looking for at 09h00 GMT yesterday. Limited out at the BF786 – 10 pips inside, for 118 pips.

We are still in the AB swing.  If price tests the BF786 and then gives us a bullish cs formation we will trade it long.

Else if price just continues down and takes out the B low, we will have a new AB swing in play. We then start all over again.

SHORT: Will be going short only IF:
Shorts are now only considered up at the 5650/5700 areas.  Stops above the cs formation - max 50 pips.

LONG: Will be going long today only IF:
Price falls to the BF786 and then gives us a bullish cs formation. Stops below the cs formation. This will be a ST with limits set at the A high since we have an 86 prior.

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