GBP/USD 20 FEBRUARY 2012

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No trade setup on Friday on Cable, price never reached the 786 as a trigger for an entry. The Asian session did however rally past the 786.

FOR TODAY:

We are in sell territory on Sterling; we need a clear bearish cs formation for a short trade setup.

Else a sustained break of the 5928 highs will start the reversal process on this timeframe.

SHORT: Will be going short only IF:

We need a clear bearish sc formation for a short trade setup. Place stop 14 pips above the high of the cs formation, max1.5% risk. This will be a ST entry, with limits down at 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 need a dip and a bullish cs formation for 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.