Wednesday, 27 June 2012

GBP/USD 27 JUNE 2012


GBP/USD - follow me on twitter @fxdailyforecast and stocktwits.com/fxg
Price took out the 5634 high but then pulled back,. The US rally tested the highs again without taking it out. Today we will look for price to continue up.

FOR TODAY:
We need 5650 to break on a sustained basis to open the upside. We expect price to retrace and maybe even test the US lows before resuming the rally. Look to buy after dips followed by bullish sc formations.

Shorts are considered higher up at the 618/786 after bearish cs formations.

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

SHORT: Will be going short only IF:
Short trades are considered higher up at the 786 of this swing. We will need a really clear bearish cs formation at the 618 to consider a short since its close to the 5650 break. Look for 786 to offer resiatnce rather.
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:
Buying after a dip followed by a bullish cs formation will be the preferred strategy. We look for price to extend towards 5720 over coming sessions. Place stops 10 pips below the cs formation, limits at 5715.

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

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