GBP/USD 20 JUNE 2012

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

Price rallied yesterday but failed to convincingly take out the B high, it rallied 15 pips higher.

FOR TODAY:

We will wait and see what develops, if we get a bearish cs formation after the BF786 we will consider short entries.

If we rally to take out the 5756 high then price will continue higher, probably towards 5880/5900.

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 5756 opens the upside again.

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 yesterday’s low to hold, if price dips we will look for bullish cs formations circa 5668/45 to contain the fall, we will consider buying after bullish cs formations at these levels. 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.