GBP/USD
No trade setup on GBP yesterday, price rallied and took out the A high doing a reversal on the 1h chart. We have since fallen back to the 618 of this AB swing.
FOR TODAY:
I don’t really like a spike through the 618 just shy of the 786 like we have on this pair. I prefer a more definite bounce either off the 618 or the 786.Today we will be looking for resumption of the rally to take out the 5593 B high. Will prefer a test of the 786 before we rally but will wait and see what we get.
Short trades are only considered up at the BF786 at 5567 after bearish cs formations.
SHORT: Will be going short only IF:
Price gets up to the BF786 at 5567 and gives us a bearish cs formation, trade this down to the 786 since we had a 618 prior bounce. Stops above the cs formation.
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 have already bounced during the Asian session, we will look for a test of that level this morning and another bullish cs formation for a long trade setup, if the Asian support holds then we will enter long on that bullish cs formation, else we look for support lower down at the 786 followed by a bullish cs formation.
For position traders - Since this is the first bullish AB swing since price reversed yesterday, we could look to PT this up to the bigger 618 at 5881 on the daily, depending on entry it could be some 300 pips away. Remember if you do PT this it would be a limit that is days away.
If we don’t get the setup we are looking for then we don’t trade.
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