GBP/USD 1 FEBRUARY 2012

GBP/USD

Yesterday price formed a new B high giving us a new AB swing.

FOR TODAY:

We now need to wait for a retracement to the 618/786 and a bullish cs formation for a long trade setup, or a rally to test the B high and a bearish cs formation after hitting the BF786.

SHORT: WILL ONLY BE GOING SHORT IF:

Price rallies to the BF786 and then gives us a bearish sc formation.  The limits for this entry will depend on the prior bounce. At time of writing we don’t even have a 382 as yet. Let’s wait and see. Stops 14 pips above the high of the cs formation, max 1.5% risk.

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 a retracement to the 618/786 and a bullish cs formation for a long trade setup. Trade the 618 for 60-70 pips and the 786 will be a ST to the BF786. Stops 10 pips below the cs formation, max 1.5% risk.

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