GBP/USD 12 APRIL 2012

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Sterling rallied in the morning session and then consolidated; price seems to be pushing for yesterday’s highs at present.

FOR TODAY:

With the DD at 5800 area our preferred strategy is still to buy after dips and a bullish cs formation. We will look for price to extend to 5963 enroute to 6006 over coming sessions.

We only look for short entries after reaching the BF786.

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

SHORT: Will be going short only IF:

We get a bearish cs formation after price hits the BF786. Place stop 13 pips above the high of the cs formation, max 1% risk. Limits will be defined later.

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 need a dip followed by a bullish cs formation for a long entry. Limits here will be at 5950/80, stop 10 pips below the low , max 1% risk.

Else we need a  retracement down to the 618/786 followed by clear bullish cs formations at either of those levels.

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