3/10/2012 GBP/USD Long

GBP/USD 4hour

Long or Short: Long

Entry Point: 1.5705 ( just above the soft resistance level)

Stop Loss: 1.5580 ( 0.5 Fibonacci level)

Profit Target/s: 1.5905 ( Top resistance area)

Reward-to-risk Ratio: 1.6:1

Risk percentage: 3%

Indicators: RSI

Trade Rationale:Current trading level has offered solid support in the past which is also the 0.38 Fibonacci support coming from the Jan 13 - Feb 08 upswing. We will wait for the soft resistance to break and also allow RSI to climb little higher from current levels. No fundamental catalyst for the pair to climb lower and in fact improved in the medium term with successful Greek PSI deal.

Trade Adjustments: Will move stop to +30 from the entry when I’m up 100 pips.

I see some pretty strong momentum to the downside here, with lower highs and lower lows. I’m looking for a break of this key support level longer term and a retest to go short.

I am taking this trade live on my real account. Let’s see how it goes.