Friday 25 November 2011

GBP/USD 25 NOVEMBER 2011



GBP/USD
No trade setup on GBP yesterday. Price also fell and took out its B low yesterday.

FOR TODAY:
We now have to wait for a B to form, once we have a B we can draw fibs to identify the 618/786. We can only sell at the 618/786, or buy a BF786, but first we need a B to form.

SHORT: Will be going short only IF:
After we have a B low, we then 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:
After the B has formed we need a swing high and then a fall to the BF786 followed by a bullish cs formation. Stops below the low of the cs formation, max 1.5% risk, and limit will be dependent on the prior bounce of the swing high.

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

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