Tuesday, 20 March 2012

GBP/USD 20 MARCH 2012



GBP/USD - follow me on twitter @fxdailyforecast and www.stocktwits.com/fxg
No trade setup on Cable yesterday . Price rallied to the 786 of the AB swing.

FOR TODAY:
With price rallying to the 786 yesterday and finding resistance there, today should be a DA786 trading day where we are looking for price to test the 786 high and give us a bearish cs formation for a short trade setup.

Else if price just rallies without a bearish U turn signal, then the bulls are targeting the 5991 highs.

A violation of the 5991 highs will start a reversal on this timeframe.

If we don’t get the setup we are looking for then we don’t trade.

SHORT: Will be going short only IF:
We get a rally and a bearish cs formation, either testing yesterday’s highs, or higher up while inside the 5991 highs. Stop will be 13 pips above the high of the cs formation, max 1% risk. This will be considered a ST with limits down at the BF786 over coming sessions.

If we don’t get the setup we are looking for then we don’t trade.

LONG: Will be going long today only IF:
We are not in long territory here at present, but be on the lookout for dips followed by bullish cs formations, this is an indication that price is heading for the 5991 highs.

If we don’t get the setup we are looking for then we don’t trade.

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