GBP/USD 2 DECEMBER 2011

PLEASE NOTE - TODAY IS NFP DAY !!! BROKERS MIGHT NOT HONOUR STOPS, SO MANAGE TRADES CAREFULLY IF YOU GOING TO ENTER TRADES TODAY !

GBP/USD

No trade setup on Sterling yesterday, price did rally to the BF786 and did give us a bearish cs formation , but after the session ended.

FOR TODAY:

Today we have a DABF786 trading day where we expect price to fall down to the 618 -5622 since our prior bounce yesterday was a 50. We will look to sell rallies after bearish cs formations.

Else if price rallies and takes out the B high at 5779, then we will be setting up for a new AB swing on this time frame.

SHORT: Will be going short only IF:

We would ideally like a small rally and a bearish sc formation for a short trade entry. Limit for this entry will be at the 618 -10 pips inside, since our prior BF786 bounce was a 50. Stop above the high of the cs formation, max 1.5% risk.

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 would still be open, add to this on entries mentioned above with all limits set at 5871 – 10 pips inside the 618 at 5881.

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