GBP/USD DAILY FORECAST 4 JULY 2011

REMEMBER 4^th JULY HOLIDAY – US SESSION WILL BE QUIET.

GBP/USD – HOURLY CHART

Friday we got a bearish cs formation, followed by a bullish one at the 618 support, where we exited the bearish cs formation for 41 pips profit. The bullish trade got limited out during the Asian session for 60 pips. We are back at the BF786 territory, price bounced off the 618 again on Friday showing the support that exists at that level. If we get another bearish cs formation from current levels we will short it down to the 786. Else we will buy at the 618 if we get a bullish cs formation there again.

SHORT: Will be going short only IF:

We get a bearish cs formation at current levels, or higher up inside the AB swing. Trade this as a PT to the 786.

LONG: Will be going long today only IF:

We get a bullish cs formation at the 618/786. The 618 will be good for 60pips and the 786 as a PT to the BF786.