Wednesday, 5 October 2011

GBP/USD 5 OCTOBER 2011



GBP/USD
Price gave us the bullish cs formation we were looking for yesterday, we entered at 5379, this is a ST to 10 pips inside the  A high – 5736. Stops for that trade can now be placed at zero.

Today we have a DABF trading day where we are looking for price to extend toward the A high, with this being the target over coming days. We are looking to buy dips to that price. If we don’t get a dip and price just rallies from here then we have no trade, we need a dip to buy into. Stops below the low, limits same as yesterday’s limit- 5736.

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

LONG: Will be going long today only IF:
Today is a DABF trading day where we are looking for continuation of the rally towards the 5736 price area. Remember this is a ST so it may take a few days to get there. We will add to this position by buying dips towards 5736. Place stops below the low of the cs formation, max 50 pips, limits up at 5736.

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

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