GBP/USD 10 APRIL 2012

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

Sterling rallied since bouncing off 5804 last week.

FOR TODAY:

We are in no man’s land on Sterling at present, bouncing off the 5804 price level of the big AB swing. We can only sell up at the BF786, or buy lower at the 618/786 of this swing.

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 bearish cs formation after price hits the BF786. Place stop 13 pips above the high of the cs formation, max 1% risk. Limits will be defined later.

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 need a retracement down to the 618/786 followed by clear bullish cs formations at either of those levels.

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