Wednesday 23 November 2011

GBP/USD 23 NOVEMBER 2011



GBP/USD
Price stopped out for 50 pips loss yesterday on the BF786 long trade setup we entered.  The break of the low was not sustained ands price bounced right back into the old AB swing indicating that we’re in for a deeper retracement on this AB swing.

FOR TODAY:
We are now back at a BF786 trade opportunity with price having hit the BF786 during the Asian session.
We are now looking for a bullish cs formation for an entry point.

Else if price falls and takes out the B low on a sustained basis we will then have a new AB downswing in play.

SHORT: Will be going short only IF:
We need price up at the 618/786 of this AB followed by a bearish cs formation before we can consider short entries. Stops above the cs formations and limits on the 618 is 100 pips, while the 786 entry will be a ST to the BF786.

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 get a bullish cs formation from current levels or lower down while inside the B low. Stops below the low of the cs formation, max 1.5% risk, and limit will be 80pips since we have a shallow bounce, less than a 382 prior. We need to break yesterdays high to continue up, exit trade on a bearish cs formation at that level.

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

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