[TW] 8-12-2011 GBP/USD SHORT By Rhine

Long or Short : Short
Entry Point : 1.6199
TP : 1.6130 or 1.6030 [if 50.0 fibo break easily]
SL : 1.6250
reward to risk ratio : 2 : 1
Risk percentage : 0.2%
indicator : Stochastic, fibonanci, trend line

Trade rationale : Stochastic at overboght area and heading down, Down trend, strong resistant, and USD has weaken, when GBP stronger like pipnocular said: “With the debt crisis still in full swing in Europe, the U.K. has been treated as a sort of safe haven among its debt-laden neighbors”

Trade Adjustment : none. SL and TP enough

When you submitted your trade it was a good idea based on your parameters. Unfotunately the market moved against you. For longer time frames I like to use a slower Stochastic, mine is set at 20,7,7 which shows that it is coming out of oversold. Overall I think the pair will continue to movr down after this retracement. I don’t think it will get higher than 1.640. But afterall I am just a newbie.

If you look at this from a harmonic pattern perspective, it has developed into both a bear gartley and a bear bat.

X = 16336
A for bat = 16208
A for gartley, just of 61.8 at 16243

The 88.6 completion point at 16310 was spiked (1H) by 2 pips (16312) and then it beat 47 pip retreat to 16265. Now its tightening its coil to blow either way. I only use an RSI, which was unremarkable, but doing some divergence on lower TFs.