GBP/USD 1 MAY 2012

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

Did not trade yesterday.

FOR TODAY:

We have our A low down at 6152 and the B high at 6300. We can only buy at the 618/786 after clear bullish cs formations, or sell up at the BF786.

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 rally followed by 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 price to hit the 618/786 followed by clear bullish cs formations for a long entry setup. Stops will be 10 pips below the low of the cs formation, max 1% risk, limits will be 60-70 pips, or inside the BF, whichever comes first.

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