GBP/USD 30 NOVEMBER 2011

GBP/USD

No trade setup on GBP yesterday, price rallied and took out the B high confirming the reversal on the 1h chart.

FOR TODAY:

Price has retraced to the 382 of the current AB swing and has gone sideways since. We are looking for a bounce off the 618/786 for a long trade setup, and a bounce off the BF786 for a short trade setup.

SHORT: Will be going short only IF:

Price gets up to the BF786 at 5639 and  gives us a bearish cs formation, trade this for 80-100 pips since it’s a shallow 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 get down to the 618/786 of this AB swing and price gives us a bullish cs formation. Trade the 618 for 80-100 pips and the 786 will be a ST to the BF786. Stops below the cs formation, max 1.5% risk.

For position traders – We still looking for an entry to PT this up to the bigger 618 at 5881 on the daily, depending on entry it could be some 200 pips away. Remember if you do PT this it would be a limit that could be days away.

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