Friday 11 November 2011

GBP/USD 11 NOVEMBER 2011



GBP/USD
Price gave us the bounce we were looking for out of support yesterday, but in the US session price fell back, and then gave us another bullish cs formation which I entered long at 5915. Will look for this to extend towards 6090.

FOR TODAY:
With the bullish cs formation out of the 5875 support yesterday, we are expecting price to rally today, maybe even get a test of the lows first before a rally to the 6090 price area. Buy dips towards the 6090 price area.

Else if price rallies and gives us a bearish cs formation inside yesterday’s highs it will be resumption of the downtrend and price will be heading for the 5875 lows, else higher up around 6080/6120. 

Only when price falls and takes out the 5875/5868 lows on a closing basis will we be reversing on this pair, until then we are range bound in a 200-250 range.

SHORT: Will be going short only IF:
We get to the 6100/6120 price area and get a clear bearish cs formation. Stop above the cs formation, max 1.5% risk, limits will be at the 5930 price since it’s a ST.

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

LONG: Will be going long today only IF:
We are looking for dips to buy into today with price looking to rally to the 6090 area, look for either a dip or a test of the lows and a bullish sc formation for a long entry, stop below the low, max 1.5% risk, limits set at the 6090 price since it will qualify as a ST setup.

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

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