GBP/USD 6 FEBRUARY 2012

GBP/USD

Price bounced just shy of the 786 on Friday and we are almost back there again.

FOR TODAY:

We will be looking to buy a bullish cs formation at the 786/86 if such an opportunity presents itself, else if price breaks the 5706 A low then we will be starting the reversal process on this timeframe.

SHORT: Will be going short only IF:

We need price up at the BF786 followed by a bearish cs formation for a short trade setup. Stop 14 pips above the high of the cs formation, max 1.5% risk, limits down at the 786.

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 a bullish cs formation after hitting the 786 at 5744. Trade this as a ST with limits set at the BF786. Stop 10 pips below the low of the cs formation, max 1.5% risk.

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