GBP/USD 14 MAY 2012

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No trade setup on Sterling on Friday, price never gave us a decent pullback for a sell entry. Price proceeded to break the B low during the Asian session.

FOR TODAY:

We now have a new AB swing in play, we will need to wait for a pullback to the 618/786 of this swing for a sell entry. We don’t have a clear enough setup for a BF long trade, so will not being looking for long entries.

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

SHORT: Will be going short only IF:

We need price to rally to the 618/786 of this swing and give us bearish reversal cs formations at either of these fibs. Place stop 13 pips above the high of the cs formation, max 1% risk. Limits defined at entry.

If we don’t get the set-up we are looking for then we don’t trade.

LONG: Will be going long today only IF:

We will first need a swing high followed by a test of the low by way of a BF786 followed by a bullish cs formation for a long trade setup. At present we don’t have a clear setup for such a trade.

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