GBP/USD 1 JUNE 2012

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

No trade setup yesterday, price fell and gave us a new AB swing.

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.

Long trades are considered on bullish cs formations from current price since the BF has already been tested.

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 setup we are looking for then we don’t trade.

LONG: Will be going long today only IF:

Price has bounced off the 382 of this AB swing and has tested the BF786 already, a clear bullish cs formation will initiate a long trade setup. Place stops 10 pips below the low of the cs formation, max 1% risk, limits 60-70 pips.

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