[TW] 2-4-2012 GBP/USD (Short)

GBP/USD 4-hour

Long or Short: SHORT

Entry Point: 1.5850
Stop Loss: Just above last week’s high
Profit Target/s: None, a trailing stop will be used. The stop should be equal to your initial stop
Risk percentage: < 2%
Indicators: None

I normally don’t take trades like this, but the bulls seem to have overextended themselves. I believe the bulls will have a hard time breaking through resistance (you can see how price has tried to pierce through the level 3 times, but failed all thrice also and even made a new “lower low” after.)

Since this is a counter-trend, I’ll be using a trailing stop. This should help me get out of the trade in case the overall trend continues.