GBP/USD 13 JUNE 2012

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Price gave us the bearish cs formation we were looking for yesterday but the trade was stopped out for 46 pips loss. Price again failed to take out the B high during the Asian session and has since fallen back.

FOR TODAY:

We are still in the same AB swing, having failed twice at the highs we are looking for price to continue down. We will look for another short entry, maybe after a rally to test Asia’s high followed by a bearish cs formation looking for price to fall down to 5410.

A sustained break of 5600 negates this view and opens the upside to further rallies.

A bullish cs formation circa 5482/50 or lower down at the 618/786 will initiate a long trade setup. Will wait and see what materializes.

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

SHORT: Will be going short only IF:

Today we will look for price to continue down to test 5410. Price can either fall from current levels, or rally and give us another bearish cs formation before heading lower. Place stop 13 pips above the cs formation, max 1% risk. Limits will be down at 5410.

A sustained break of 5600 negates this view and opens the upside.

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

LONG: Will be going long today only IF:

Bullish support circa yesterdays lows will initiate a long trade setup based on DD principle showing us that support is holding and will be good for a 100 pip rally.  Place stop 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.