GBP/USD 7 JUNE 2012

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Price found resistance at 5500 yesterday. Will wait and see if we get another test.

FOR TODAY:

Today is a DA86 trading day where we are looking for price to continue down, maybe after a test again. Look to sell rallies after bearish cs formations.

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:

Being a DA86 trading day, we are looking for a test followed by bearish cs formations for a short entry. Place stop 13 pips above the cs high. Limits are at 5333.

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 setup 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 5515.

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