GBP/USD 2 APRIL 2012

Note the 4h chart above, same AB swing as the 1h.

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

No trade setup on Sterling on Friday past. Price broke the 6000 highs doing a reversal on this timeframe.

FOR TODAY:

Price hit the BF786 during the Asian session. We will look to sell another test followed by a bearish cs formation.

Else a sustained break of the 6036 high will give us a new AB swing in play.

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 another test of the Asian high. Place stop 13 pips above the high of the cs formation, max 1% risk. Limits here will be 60-70 pips since its s shallow bounce.

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 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.