GBP/USD 19 MARCH 2012

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No trade setup on Sterling on Friday. Price rallied to the 618 of the AB swing.

FOR TODAY:

Looking for price to extend its rally, so we look to buy after a dip and a bullish cs formation with a view to price heading higher up.

Else since we are at the 618 of the AB swing,  if we get a clear bearish cs formation we can enter a short trade setup, else higher up at the 786-5908.

A violation of the 5991 highs will start a reversal on this timeframe.

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 clear bearish cs formation either at current levels, or higher up at the 786. 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 are looking for price to extend its rally and we look to buy after a dip and a bullish cs formation. Places stop 10 pips below the low of the cs formation. Limits will be defined at time of entry.

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