Thursday, 3 November 2011

GBP/USD 3 NOVEMBER 2011



GBP/USD
We were stopped out at zero on the long trade setup we were in, price never rallied higher.

FOR TODAY:
Price dropped down to the A low but never broke it convincingly and on a closing basis. We have bullish support there and a bullish cs formation at the low. Will wait for a clearer setup though since the bullish cs was during the Asian session.

Else if price falls and takes out the A low then we will be reversing on this pair.

SHORT: Will be going short only IF:
We get to yesterday’s highs and get a bearish sc formation, or else higher up at the BF786 get a bearish cs formation.  The BF786 will qualify as a ST down to the A low since we would have had an A low prior bounce.

LONG: Will be going long today only IF:
We get a test of the support created in Asia and a bullish sc formation, trade this as a ST up to the BF786.

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

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