Monday 14 November 2011

GBP/USD 14 NOVEMBER 2011



GBP/USD
The long entry at 5915 was limited out at 6090 for 175 pips profit on Friday. Price rallied just shy of 6100, so we are virtually back at the BF786 on this pair.

FOR TODAY:
We need a bearish cs formation telling us that we are heading down again, this bearish cs formation can appear anywhere inside the B high which is at 6165. With a deep swing like we have been having we cannot rule out a test higher up. 
If price rallies and takes out the B high at 6165 we will have a continuation of the uptrend with the A down at 5868.

We will be reversing on this timeframe only once we violate the 5868 lows on a closing basis.

SHORT: Will be going short only IF:
We get a clear bearish cs formation, a test of the 6100 or higher would be better. Stop above the cs formation, max 1.5% risk, limits will be at the A low since it’s a ST with an 86 prior.

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 need price down at the 786 for a long trade setup. We are very far away from that level at present. The only other long trade possibility would be a clear bullish cs formation around the UK open.

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

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