Friday, 10 February 2012

GBP/USD 10 FEBRUARY 2012



GBP/USD
Price rallied yesterday, but not high enough into sell territory so we stayed on the sidelines.

FOR TODAY:
Price is heading for the 786 of the AB swing. We will wait and see if we get a bullish cs formation after hitting the 786. Else a violation of the 5729 lows will initiate a reversal on this timeframe.

SHORT: Will be going short only IF:
We need price up at the BF786 and a bearish sc formation for a short trade setup. Place stop 14 pips above the high of the cs formation, max1.5% risk. Limits will be defined if we get a short entry today.

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

LONG: Will be going long today only IF:
We get to the 786/86 or even the A low and price gives us a bullish cs formation. Place stops 10 pips below the low of the cs formation, max 1.5% risk. This will be a ST entry with limits set at the BF786.

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

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