GBP/USD 17 MAY 2012

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No trade setup on Sterling yesterday, but we have a B swing low in place at 5889.

FOR TODAY:

We can sell up at the 618/786 (which is 100+ pips away) after we get bearish reversal cs formations at either of those levels.

Long trade set-ups are considered on a test of the BF786 followed by bullish 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:

We need price to rally to the 618/786 of this swing and give us bearish reversal cs formations at either of these fibs. Place stop 13 pips above the high of the cs formation, max 1% risk. Limits defined at entry.

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 need price to test the BF786 followed by a bullish cs formation for a long trade setup.  Stops will be 10 pips below the low of the cs formation, max 1% risk, limits defined at time of entry.

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