GBP/USD 26 JUNE 2012

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We now have a B low at 5538. We waited yesterday for this swing to form.

FOR TODAY:

We will look for resistance up at 5630/50, failing that, higher up circa 5725.

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/ Fridays high, or higher up at the 618/786 of this swing. 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.