GBP/USD 6 DECEMBER 2011

GBP/USD

No entry on Cable yesterday, we were looking for a BF786, price came 18 pips shy of the BF786 and fell.

FOR TODAY:

Today we will be looking for a rally and a bearish cs formation for a short entry. The bearish cs formation inside yesterdays high will be confirmation that yesterdays high will be holding.

Long entries are still considered down at the 786 at 5579 after clear bullish cs formations. This will be considered a DD entry, good for a rally to the BF786.

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

SHORT: Will be going short only IF:

We need a rally and a bearish cs formation for a short entry. Place stop above the cs formation, max 1.5% risk, and the limit will be 80-100 pips.

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 is still open, but doesn’t look good at present. The failure yesterday doesn’t bid well for our long entry and is likely the sign that price is heading to the A low over coming sessions. Stops are at zero, so no risk on this entry.

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