GBP/USD 7 FEBRUARY 2012

GBP/USD

Price bounced off the 86 yesterday and has rallied to our limit, 10 pips inside the BF.

FOR TODAY:

Today we will wait and see if price rallies to the BF786 and gives us a bearish sc formation, else a violation of the A low will be the start of a reversal 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 10 pips inside the A low.

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 around yesterdays lows or even from 5760 onwards, this will constitute a DD trade set-up and will be good for a 100 pip rally. 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.