Monday, 26 March 2012

GBP/USD 26 MARCH 2012


GBP/USD - follow me on twitter @fxdailyforecast and stocktwits.com/fxg
Price gave us a bearish cs formation on Friday, we went short, but exited on the test since we didn’t want an open position for the weekend with price either at our entry price, or against us since we never know where price opens after the weekend.

FOR TODAY:
We are still of the opinion that price is heading lower; we look to re-establish short trades on tests 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 after testing the 5908/22 highs. 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 the 5769 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 pips 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.

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