GBP/USD 19 JANUARY 2012

GBP/USD

The short  trade lost 1.5% with price taking out the A high doing a reversal on the 1H chart.

FOR TODAY:

We now have to wait for a new B to form, once we have that we will draw fibs to ascertain where the 618/786 is. We can only buy down at the 618/786, or sell once we have a BF786.

SHORT: WILL ONLY BE GOING SHORT IF:

We need a BF786 and a bearish cs formation for a short entry, right now we don’t have a B high yet. So we will need to wait for a B to form, then a swing low to form, then a BF786 setup. So probably no short trade setup on GBP today.

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 need price down at the 618/786 and a bullish cs formation for a long trade setup. But first we need a B to form before we can draw fibs.

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