GBP/USD 6 JUNE 2012

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No setup on Sterling yesterday, price never tested the BF786.

FOR TODAY:

Price has just taken out 5438, we look for 5470 to see if it would offer resistance. We will short after a bearish cs formation at that level.

Long trades are considered after 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:

Price has rallied past the 618, the next level will be at the 786. If we get a clear bearish cs formation there we will short. Else bulls are chasing 5525 to start a reversal on this time-frame. 

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 can only enter a long trade set-up after a test of the BF786 followed by bullish cs formation. Place stops 10 pips below the low of the cs formation, max 1% risk, limits here will be at 5460

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