GBP/USD 1 MARCH 2012

GBP/USD - follow me on twitter @fxdailyforecast

We were stopped out of our short trade yesterday for a 20 pip loss, price rallied and then created the B high we were looking for, price has now started the reversal process on this timeframe.

FOR TODAY:

We have a B high at 5991; we will now be looking to buy at the 618/786 of this new AB swing.

Else shorts are only considered once we hit the BF786 followed by a bearish cs formation.

SHORT: Will be going short only IF:

We get another attempt at the highs followed by a bearish cs formation. Trade this for a 70 pip fall since it’s a shallow bounce. Stop will be 13 pips above the high of the cs formation.

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 price down at the 618/786 and a bullish cs formation for a long trade setup. Place stop 10 pips below the low of the cs formation, limits advised later.

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