GBP/USD 3 APRIL 2012

Note that I am still using the 4h chart for the post since its the same swing as the 1h chart, but easier to see on 4h time frame.

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

No trade setup on Sterling on yesterday. Price broke the 6036 high rallying to 6062 and consolidating since.

FOR TODAY:

We will use 6062 as the new B high of the AB swing. We can only sell after price hits the BF786 of this swing, or buy a lot lower down at the 618/786.

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 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.