GBP/USD 30 MARCH 2012

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

No trade setup yesterday. Price rallied late in the day yesterday and during Asia.

FOR TODAY:

We are virtually at the 6000 highs, we need a sustained break here to continue up and start the reversal on this time-frame. 

A bearish cs formation from current levels or failure at 6000 again will signal a short entry.

If we don’t get the set-up we are looking for then we don’t trade.

SHORT: Will be going short only IF:

We get a bearish cs formation from current levels, or a failure around 6000. 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 set-up we are looking for then we don’t trade.

LONG: Will be going long today only IF:

We get a retracement followed by a clear bullish cs formation. This will be a sign that the bulls are heading for 6000 highs, place 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.