GBP/USD 7 MARCH 2012

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No trade setup on Sterling yesterday, Price continued down to the 86 of the AB swing.

FOR TODAY:

We will wait and see if price finds support around this level, or while inside the 5644 lows. A bullish cs from current levels will initiate a long trade setup.

A break of the 5644 low on a sustained basis will open the downside and start a reversal on this timeframe.

SHORT: Will be going short only IF:

We get a rally towards yesterday’s highs followed by a bearish cs formation, else higher up at the BF786 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 from current levels, or lower down while inside the 5644 low. Place stop 10 pips below the low of the cs formation, limits here will be at the BF786 and it will be a ST entry.

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