GBP/USD 3 FEBRUARY 2012

GBP/USD

Price crawled down to the 50 fib level yesterday and bounced off it during the Asian session. We are still in no man’s land according to our strategy on Sterling.

FOR TODAY:

Today is NFP day so we will not be trading today, unless we get a clear setup after the announcement and price has calmed down a bit. We can only sell after a BF786 and after bearish cs formations, or buy after bullish cs formations after price hits the 618/786 of this AB swing.

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 be down at 5770. 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.