Wednesday, 9 May 2012

GBP/USD 9 MAY 2012


GBP/USD - follow me on twitter @fxdailyforecast and stocktwits.com/fxg
There was a long trade setup yesterday on Sterling and another one that presented itself now (06h00GMT). The trade is still open.

FOR TODAY:
Price tested the B low yesterday and bounced off it twice, we now have a third bounce at the opening of the 06h00 GMT candle. We will look for a rally of 60-70 pips from this bounce.
Alternatively, a break of the B low at 6113 will open the downside and give us a new AB swing and of course stop out the current long trade setup.

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 618/786. 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:
Price has already given us a bullish cs formation after the BF786, we are currently long this pair. Stops are 10 pips below the cs formation; limits are 60-70 pips.

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

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