GBP/USD 2 MAY 2012

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

No trade setup yesterday, price came 2 pips shy of the 786.

FOR TODAY:

We have our A low down at 6152 and the B high at 6300. We can only buy at the 786 after 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 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 inside the BF.

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