GBP/USD 25 JUNE 2012

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

The B low shifted on Friday to 5556, price has consolidated during the Asian session

FOR TODAY:

We will look for resistance up at 5630/50, failing that, higher up at circa 5730

Long trades are considered after a BF786 test followed by a bullish 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 look to sell a bearish cs circa 5630/50– past support becoming resistance, or higher up at 5690 – 618 and round number, failing this we have a 786 at 5729. Place stop 13 pips above cs formation, max 1% risk, limits defined at time of entry.

A sustained break of 5777 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 need a test of the BF786 followed by a bullish cs formation for a long trade setup. Trade this for 70-80 pips since it’s a shallow bounce, stops are 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.