GBP/USD 29 MARCH 2012

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We exited our short trade yesterday with 115 pips profit, price bounced out of 5841 and rallied since.

FOR TODAY:

Today we will have to see if the resistance or support level holds, the bounce out of 5841 is also a 786 of the last interim swing, this might have been the dip the bulls were looking for before rallying to violate the 1.6000 high.

A sustained break above 1.6000 starts 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 test of 5939/66 followed by a bearish cs formation. 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 set-up we are looking for then we don’t trade.

LONG: Will be going long today only IF:

We get a dip followed by a clear bullish cs formation. This will be a sign that the bulls are heading for 1.6000 highs, place stop 10 pips below the low of the cs formation, max 1% risk.

If we don’t get the set-up we are looking for then we don’t trade.