GBP/USD 11 JUNE 2012

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No trade setup on Friday, price came shy of the 618 then rallied late in the US and during the Asian session.

FOR TODAY:

We are still in the same AB swing. We will need a retracement to the 618/786 followed by a bullish cs formation for a long entry.

Shorts are only considered after a bearish cs formation since price has already tested 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 bearish cs formation for a short entry setup since the BF786 was already tested. Place stop 13 pips above the cs formation, max 1% risk. Limits will be down at 5410.

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 a retracement to the 618/786 of this swing followed by a bullish cs formation for a long entry. Place stop 10 pips below 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.