GBP/USD 21 JUNE 2012

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Price broke the B high giving us a new AB swing, and retraced to bounce off the 786.

FOR TODAY:

We will look to buy after a bullish cs formation if price finds support at current levels, or lower down at the 786.

Short trades are only considered higher up after rallies to test the B high.

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 consider short trade setups if price tests the BF786 followed by a clear bearish cs formation. Place stop 13 pips above the cs formation, max 1% risk. Limits will be 70-80 pips.

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 will look for yesterday’s lows to hold, we will look for bullish cs formations from current levels or lower down at yesterday’s lows to contain the fall, we will consider buying after bullish cs formations at these levels. 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.