GBP/USD 16 JULY 2012

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

Price rallied on Friday to take out the A high starting a reversal on this timeframe.

FOR TODAY:

We need price to retrace to the 618/786 of this swing followed by a clear bearish cs formation for a long trade setup.

Shorts will not be considered since we have broken the high starting a reversal, we are now looking for long trade setups. The criteria are not present for short trade setups.

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

SHORT: Will be going short only IF:

No short trade set-ups, we have broken the A high and we don't have the set-ups in place for a short trade set-up.

If we don’t get the set-up we are looking for then we don’t trade.

LONG: Will be going long today only IF:

We need price to retrace to the 618/786 of this swing followed by a clear bearish cs formation for a long trade setup.

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