GBP/USD 5 AUGUST 2011

PLEASE NOTE THAT TODAY IS NFP DAY. WE WILL NOT BE PLACING ANY TRADES TODAY, THE FORECAST IS MERELY FOR INFORMATION PURPOSES TODAY.

IF THERE IS A CLEAR TRADE SETUP AFTER THE ANNOUNCEMENT I WILL POST IT, ELSE NO TRADING TODAY.

GBP/USD

We had a small test then a bearish  cs formation, followed by a test of that formation, but it wasn’t clear enough for a trade entry, so no clear trade setup on GBP yesterday.

Price fell yesterday all the way down to the B low during the Asian session. We are now in buy territory, we already got the bullish cs formation for a long trade setup, we expect that price will now rally today up to the786/86, even maybe the A high.

SHORT: WILL ONLY BE GOING SHORT IF:

We get to the 786 again and get a bearish cs formation. Trade this to the B low as a PT.

LONG: WILL ONLY BE GOING LONG TODAY IF:

We have a BF trade setup, we just need price at the 6264 level where we have a max 50 pip stop below the cs formation. Trade this as a PT to the A high since we had an 86 prior.

EUR/USD 5 AUGUST 2011

EUR/USD

We got the test of the Asian highs yesterday, but price never retraced back high enough for an entry at 4293, so no trade setup on EUR yesterday.

We now have a new AB swing since price fell and took out the B low yesterday. We will have a long trade setup if we hit the BF786 and get a bullish cs formation, or we can sell if price rallies to the 618/786 and gives us a bearish cs formation.

We might be having a lower top in place up at 4453 and we might consider holding a short position for a few days if we enter higher up, and keep in down to 4000/3836.

SHORT: Will be going short only IF:

We need price up at the 618/786 and a bearish cs formation for a short trade setup. Trade both these as PT for a few days as mentioned above.

LONG: Will be going long today only IF:

We get down to the BF786 and get a bullish cs formation, this will be a shallow bounce, but since the swings are getting bigger, trade it for a 100 pip limit.

GBP/USD 4 AUGUST 2011

GBP/USD

No trade setups on GBP yesterday.

Price Rallied yesterday and gave a bearish cs at the 86 during the Asian session. We need a test of that session high and a bearish cs formation for a short entry. Long trades setups will only be considered if we hit the BF786 and get a bullish cs formation.

SHORT: WILL ONLY BE GOING SHORT IF:

We get a test of the highs at the 86 and a bearish cs formation, place stop above the cs formation with limits set at the BF786, this will be a PT, or we can PT down to the 6104-786 or the 5927-786 as mentioned yesterday, this will be over several days, maybe even a week or two.

LONG: WILL ONLY BE GOING LONG TODAY IF:

We need price down at the BF786, then bullish cs formations confirming the U turn. This will be a PT to the A high since we had an 86 prior.

EUR/USD 4 AUGUST 2011

EUR/USD

Our FO got filled at 4197, and limited out at 60 pips profit yesterday.

We are still in the AB downswing on EUR. Price bounced just shy of the 786 during Asia and gave us a bearish cs formation. We need a test of those highs and a bearish cs formation for a short trade setup. Long will be considered down at the BF786, after bullish cs formations.

We might be having a lower top in place up at 4453 and we might consider holding a short position for a few days if we enter higher up, and keep in down to 4000/3836.

SHORT: Will be going short only IF:

We need a test of the Asian session highs and a bearish cs formation confirming the short entry, trade this as a PT to the BF786.

LONG: Will be going long today only IF:

We get down to the BF786 and get a bullish cs formation, this will be a PT to the 786.

GBP/USD 3 AUGUST 2011

GBP/USD

No trade setups on GBP yesterday.

Price remained in the AB swing for the trading day yesterday. We are now looking for a BF786 and a bullish cs for a buy entry, and shorts will only be considered up at the 618/786 after bearish cs formations.

SHORT: WILL ONLY BE GOING SHORT IF:

We get price up at the 618/786 and after bearish cs formations. The usual limits are 60 pips at the 618, and a PT on the 786 down to the BF786, or we can PT down to the 6104-786 or the 5927-786 as mentioned yesterday, this will be over several days, maybe even a week or two.

LONG: WILL ONLY BE GOING LONG TODAY IF:

We need price down at the BF786, then bullish cs formations confirming the U turn. This entry will attract a limit of 60 pips since it’s a shallow bounce.

EUR/USD 3 AUGUST 2011

EUR/USD

No trade setups on EUR yesterday.

We are still in the AB downswing on EUR. We have a BF786 bounce already during Asia, we are now looking for a test of the 4197 price where we have a 50max stop, we can place our FO there for a long position if price comes back to test that level. Limits are set at 60 pips since it’s a shallow bounce.

We might be having a lower top in place up at 4453 and we might consider holding a short position for a few days if we enter higher up, and keep in down to 4000/3836.

SHORT: Will be going short only IF:

We need price up at the 618/786 followed by a bearish cs formation for a short entry, the 618 will have a 60 pip limit,(or hold as mentioned above) and the 786 will be a PT to the BF786.

LONG: Will be going long today only IF:

We have already had a BF786 and a bullish cs formation during Asia. We now need a test of the 4197 area where we have a FO placed for a long trade. Limit on this one is  60 pips since it’s a shallow bounce.

GBP/USD 2 AUGUST 2011

GBP/USD

We got our BF786 trade yesterday after the bearish cs formation, limited out at 60 pips.

Price then fell and took out the A low starting the reversal process. We now have a new AB downswing in play. We need price higher up for a sell and at the BF786 for a buy, both after confirming cs formations.

This might also be the lower top in place at 6474, a bearish entry here can also be kept until the 6104-786, or the bigger 5927-786. This will be a PT over several days.

SHORT: WILL ONLY BE GOING SHORT IF:

We get price up at the 618/786 and enter short only after bearish cs formations. The usual limits are 60 pips at the 618, and a PT on the 786 down to the BF786, or we can PT down to the levels shown above, this will be over several days, maybe even a week or two.

LONG: WILL ONLY BE GOING LONG TODAY IF:

We need price down at the BF786, then bullish cs formations confirming the U turn. This entry will attract a limit of 60 pips since it’s a shallow bounce.

EUR/USD 2 AUGUST 2011

EUR/USD

We lost 48 pips with the bearish engulfing cs that failed yesterday, we did get an evening star setup afterwards, but the stop was too big to take the trade.

Price fell after the evening star and fell all the way down to take out the B low, giving us a new AB downswing in play. We now need to wait for bearish cs higher up at the 618/786, or a buy down at the BF786 after a bullish cs formation.

We might be having a lower top in place up at 4453 and we might consider holding a short position for a few days if we enter higher up, and keep it down to 4000/3836.

SHORT: Will be going short only IF:

We need price up at the 618/786 followed by a bearish cs formation for a short entry, the 618 will have a 60 pip limit (or hold as mentioned above), and the 786 will be a PT to the BF786.

LONG: Will be going long today only IF:

We get to the BF786 and thereafter get a bullish cs formation. Limits set at 60 pips since it’s a shallow bounce.

GBP/USD 1 AUGUST 2011

GBP/USD

We got our BF trade on Friday after the bullish cs formation, limited out at 90 pips.

Price rallied and took out the B high on Friday giving us a new AB swing. We need a BF to short and price at the 618/786 to buy, both after cs formations.

SHORT: WILL ONLY BE GOING SHORT IF:

We are in BF territory, a bearish cs formation at current levels will constitute a short trade setup, however, a test of the high and a bearish cs formation would be a better setup. Wait and see.

LONG: WILL ONLY BE GOING LONG TODAY IF:

We need price down at the 618/786, then bullish cs formations confirming the U turn. The 618 will have limits at the 60 pip level, and the 786 will be a PT to the BF786.

EUR/USD 1 AUGUST 2011

EUR/USD

We lost 50 pips Friday with the bullish cs at the BF that failed, price bounced back up but the stop was too big for the trade therefore we passed on that one.

Price rallied shy of the 618 in the AB downswing. We can sell at the 618/786 or buy again at the BF786, both after cs formations.

SHORT: Will be going short only IF:

We need price up at the 618/786 followed by a bearish cs formation for a short entry, the 618 will have a 60 pip limit, and the 786 will be a PT to the BF786.

LONG: Will be going long today only IF:

We get to the BF786 and thereafter get a bullish cs formation. This will be a PT and limits here will be at the 786 since we would have had a 618 prior.