GBP/USD 23 MARCH 2012

GBP/USD - follow me on twitter @fxdailyforecast and stocktwits.com/fxg

Price gave us a bearish cs formation yesterday but I didn’t add to the open position since it was not 50+ pips in the money yet. Price continued down and I exited that trade for 40 pips profit as per stocktwits post/twitter.

FOR TODAY:

We are still of the opinion that price is heading lower; we look to re-establish short trades higher up after bearish cs formations.

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 the 5891 high, or higher up while inside the 5922 high. Place stop 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 get a test of yesterdays lows followed by a clear bullish cs formation. This will be a sign that the 5769 price area is holding and will be good for a long trade setup, stop 10 pipos below the low of the cs formation, max 1% risk.

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