Sunday, March 31, 2013

(6B) - Setup

The British pound (6B) contract has a had a large drop on the larger 240min timeframe. Looking at the daily chart, the pound is coming off its lows and appears to be either basing or moving in an uptrend, but its still rather weak.

Trade #1 -

Grade the Trade -

A large supply zone formed at the 240 min which should give some downside pressure once entered. As usual, we will enter once in the zone and trade to the first demand zone.  This could be considered a counter trade trade on the larger daily chart.

We will have a tight stop and tight target on this trade, should it execute. As its on a 240 min timeframe, it may be held for a couple of trading sessions for it work through.

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