GBP/USD 16 FEBRUARY 2012

GBP/USD

No trade setup on GBP yesterday, price did hit the BF786 during the Asian session though.

FOR TODAY:

We are at the BF786, today we will be looking for a bullish cs formation telling us that support at 5644 is holding.

Else a sustained break of the low on a closing basis will give us a new AB swing.

SHORT: Will be going short only IF:

We need price up at yesterday’s highs, or at the 618/786 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 60-70 pips and a 786 entry will be a ST to the BF786.

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 are in BF786 territory at present, so a clear bullish cs formation will initiate a long trade setup. Place stop 10 pips below the low of the cs formation, max 1.5% risk, limits will be 70 pips.

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