Monday 5 December 2011

GBP/USD 5 DECEMBER 2011



GBP/USD
Sterling gave us the bearish cs formation we were looking for and price fell to the 618 limit, even further to the 786.

FOR TODAY:
Price bounced off the 786 on Friday and opened higher during the Asian session. We will look to see if the 786 support will hold or if the bears are targeting the A low down at 5525.

If price takes out the A low then we will be reversing on this timeframe.

SHORT: Will be going short only IF:
Since we have already reached the 786, we can now only sell up at the BF786 up at 5735. This short entry will have a limit at the A low since we would have had a 786 prior.

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 another bullish cs formation at the 786, or lower down while still inside the A low. This will be a ST with limits for this entry at 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. 
Stop at zero, so no risk on this entry.

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

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