GBP/USD 18 JUNE 2012

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

We exited our long trade and then price rallied to our limit hours later. We now have a new AB swing in play.

FOR TODAY:

We need a fall to the 618/786 of this swing followed by bullish cs formations for a long entry.

Short trades will be considered if we get a test of the BF786 followed by a clear bearish cs formation.

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

SHORT: Will be going short only IF:

We will consider short trade setups if price tests the BF786 followed by a clear bearish cs formation. Place stop 13 pips above the cs formation, max 1% risk. Limits will be 70-80 pips.

A sustained break of 5740 negates this view.

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 will look for support down at the 618/786 where we will buy after confirming bullish cs formations.  Place stop 10 pips below the cs formation, max 1% risk.

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