Monday 16 January 2012

GBP/USD 16 JANUARY 2012



GBP/USD
Price fell on Friday taking out the B low giving us a new AB swing. A up at 5408 , and the B down at 5232. Price is still struggling to close below the 5270 lows, better seen on the daily chart.

FOR TODAY:
We will wait for a BF786 – currently down at 5253, and a bullish cs formation for a long entry or wait for price to hit the 618/786 and a bearish cs formation for a short trade setup.

SHORT: WILL ONLY BE GOING SHORT IF:
We need price up at the 618 -5341, or the 786 -5370, and a bearish cs formation for a short trade setup. Trade the 618 for a 60 pip limit and the 786 will be a ST to the BF786. Stops below the low of the cs formation, max 1.5%.

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

LONG: WILL ONLY BE GOING LONG TODAY IF:
We get down to the BF786, currently at the 5253 price level, and we then get a bullish cs formation, trade this with a limit up at the 618 since we had a 50 prior bounce. Stops below the low of the cs formation, max 1.5%.

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

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