GBP/USD 5 JULY 2012

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

Price fell yesterday to the 618 of this AB swing.

FOR TODAY:

We are looking for another test of the 618 followed by a bullish cs formation for a long trade setup.

Short trades are only considered after a test of the BF786.

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

SHORT: Will be going short only IF:

We need a rally to the BF786 followed by a bearish cs formation for a short trade set-up.

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

LONG: Will be going long today only IF:

Price has already hit the 618 of this AB swing; we need a test of the cs formation followed by another bullish cs formation for a long trade set-up. Place stop 10 pips below the cs formation, limits here will be 60-70 pips before we run into resistance.

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