Wednesday, 1 June 2011

GBP/USD DAILY FORECAST 1 JUNE 2011


ABBREVIATIONS
cs – Candle stick
PT – Position Trade
BF – B Failure
C786 – Counter 786

GBP/USD – HOURLY CHART
We have a new bearish AB swing on sterling with price having taken out the A low yesterday staring the reversal process. Price rallied shy of the 50 during Asian session. We will look to see if we rally further or fall for the day.

SHORT: Will be going short only IF:
We get to the 618/786 and a bearish cs formation. Trade the 618 for a 60 pip limit and the 786 as a PT down to the BF786.

LONG: Will be going long today only IF:
Price falls to the BF786 and gives us a bullish cs formation; trade this for 60 pips or the 618, whichever comes first.

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