GBP/USD 31 MAY 2012

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

No trade setup yesterday, price fell and seems to have given us a new B low down at 5461.

FOR TODAY:

We have a new AB swing in play. We can sell up at the 618/786 of this swing, after bearish cs formations.

No long trade  since we don’t have the setups in place as yet.

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 – very far off -  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:

No long trade setups since we don’t have an established B swing  low in place – so stand aside on long entries.

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