Friday, 11 May 2012

GBP/USD 11 MAY 2012


GBP/USD - follow me on twitter @fxdailyforecast and stocktwits.com/fxg
No entry on Sterling yesterday, price came several pips shy of the BF786, and rallied. Price then retraced late in the US session into Asia.

FOR TODAY:
Price found resistance at the 86 yesterday and fell from there. Today will technically be a DA86 trading day where we will look for price to continue down. We will look to sell after a rally and a bearish cs formation -HOWEVER -  We will look to buy if price bounces off the BF786 and gives us a bullish cs formation, this will be good for a rally to the A high up at 6197.

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 another bearish cs formation.  This will initiate a short trade setup being a DA86 trading day. Place stop 13 pips above the high of the cs formation, max 1% risk. Limits be down at the BF786.

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 will need price to test the BF786 followed by a bullish cs formation for a long trade setup. Stops are 10 pips below the cs formation; limits in this scenario will be 10 pips inside the A high – 6187.

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

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