GBP/USD 13 MARCH 2012

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Price gave us the bullish cs formation we were looking for yesterday, we went long and price  stopped us out for 33 pips loss.

FOR TODAY:

Yesterdays break of the 5644 lows have started a reversal on this timeframe. We have a new B low at 5602; we now need to wait for a BF786 and a bullish formation for a long trade, or a short trade set up at the 618/786.

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

SHORT: Will be going short only IF:

We get a rally to the 618/786 of this AB swing followed by a bearish cs formation.  Stop will be 13 pips above the high of the cs formation. Limits defined at time of entry.

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 price hits the BF786, or while inside the 5602 lows. Place stop 10 pips below the low of the cs formation. Limits will be 70 pips since it’s a shallow bounce.

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