GBP/USD 1 DECEMBER 2011

GBP/USD

Sterling gave us the bullish entry at the 618 and price rallied 100 pips. Price went on to take out the B high and give us a new AB swing.

FOR TODAY:

We need a retracement to the 618/786 and a bullish cs formation for a long entry, or we need price to rally to the BF786, currently at 5756 and then a bearish cs formation for a short trade entry.

SHORT: Will be going short only IF:

Price gets up to the BF786 at 5756 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 – The entry at the 618 yesterday would still be open, add to this on the entries mentioned above with all limits set at 5871 – 10 pips inside the 618 at 5881. Exit on a reversal on this time frame.

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