GBP/USD 13 APRIL 2012

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

Sterling rallied to the initial target of 5980 yesterday, we are still looking for 6006 though.

FOR TODAY:

We are still looking for price to rally to the 6006 price area before we are interested in trading this pair.

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 setup we are looking for then we don’t trade.

LONG: Will be going long today only IF:

We need a dip followed by a bullish cs formation for a long entry. Limits here will be at 5990, stop 10 pips below the low, max 1% risk.

Else 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.