GBP/USD 3 MAY 2012

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

There was a long trade setup yesterday, but it was an hour before I stop trading so I never took the trade.

FOR TODAY:

Price bounced out of the A low late yesterday and hasn’t rallied since. We will look to see if we get another test of the low followed by a bullish cs formation for a long entry.

Shorts are only considered much higher 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 test yesterdays lows 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 10 pips inside the BF786 over coming sessions.

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