Monday, 21 November 2011

GBP/USD 21 NOVEMBER 2011


GBP/USD
Price rallied on Friday to the 50 of the AB swing and then gave us a bearish cs formation. This was also at past support that became resistance on Friday. 

FOR TODAY:
Price has retraced back to the BF786 during Asia. We will look for long entries on bullish cs formations either at the BF786, or lower down while inside the B low.
Else if price rallies to test Friday's high and thereafter gives us another bearish cs formation that will qualify as short entry.

Else if price falls and takes out the B low we will have a new AB swing forming.


SHORT: WILL ONLY BE GOING SHORT IF:
We get a test of Fridays highs and a bearish cs formation, or we need price up at the 618/786, and then a bearish cs formation for a short trade setup. Limits for the 618 is 100 pips and the 786 is a ST to the BF786. Stops above the cs formations, max 1.5% risk.

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

LONG: WILL ONLY BE GOING LONG TODAY IF:
We get a bullish sc formation from current levels since we have already hit the BF786. Else lower down while inside the B low will do as well. This entry will be a ST with limits set at the 618 since we have had a 50 prior bounce. Stops below the cs formation, max 1.5% risk.

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

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