GBP/USD 12 DECEMBER 2011

GBP/USD

Price rallied on Friday and gave us the bearish cs formation we were looking for, but once again the stop was too big to take the trade.

FOR TODAY:

Sterling seems stuck in a range roughly between the 86 of the upswing and the BF786, approx a 200 pip range. We need a break of either to give us clearer direction.

Today we look for a test of the bearish cs formation and expect price to continue the fall, else if we get a bullish cs formation we will trade long, this will tell us that support is holding.

Only if price takes out the A low at 5525 then we will be reversing on this time frame.

SHORT: Will be going short only IF:

We get to the 5734/69 highs and then get a bearish cs formation,  stop above the cs formation, max 1.5% risk, limit will be down at the A low at 5525.

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 a bullish cs formation inside Fridays lows, or lower down while inside the A low, this will qualify as a ST to the BF786, stop below the low, max 1.5% risk.

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