GBP/USD 4 APRIL 2012

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No trade setup on Sterling yesterday. Price never hit the BF786 to trigger the short.

FOR TODAY:

We are in no man’s land on Sterling at present, being at the 382 of the big AB swing. We can only sell up at the BF786, or buy lower at the 618/786 of this swing.

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 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.