GBP/USD 30 MAY 2012

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

No trade set-up on this pair yesterday, price never gave us a bullish cs formation at the BF786.

FOR TODAY:

We have a new AB swing in play, with price having come shy of the 382 and fallen back to the B low. We can sell up at the 618/786 of this swing, after bearish cs formations.

Long trades are considered if we get a clear bullish cs formation from current levels.

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 retrace to the 618/786 of this swing followed by bearish cs formations for a short entry. Place stop 13 pips above the cs high. Limits defined at time of 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:

If we get a clear bullish cs formation from current levels it will qualify as a long entry. Place stop 10 pips below the low, max 1% risk. Limits here will be 60-70 pips. Be cautious of bearish cs formations - might be driving price down yet again.

A sustained break of 5607 negates this view and opens the downside.

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