GBP/USD 22 MARCH 2012

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Price gave us a bearish cs formation yesterday and we went short on that trade setup. We are still  in that trade.

FOR TODAY:

With the bearish cs formation again at the 786 yesterday, we expect price to fall today, maybe after a test of the highs before the fall.

Else if price just rallies without a bearish U turn signal circa yesterdays high, then the bulls are targeting the 5991 highs. A violation of the 5991 highs will start a reversal on this time frame.

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 and a bearish cs formation, either testing the 5922 high, or higher up while inside the 5991 high. We will only add positions if the current open trade is 50+ pips in the money. Place stop 13 pips above the high of the cs formation, max 1% risk. This will be considered a ST with limits down at the BF786 over coming sessions.

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 not in long territory here at present, but be on the lookout for dips to yesterdays lows followed by bullish cs formations, a break of 5922 opens the topside targeting the 5991 high.

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