GBP/USD 8 JUNE 2012

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We have a B swing high in place from yesterday. Price has since retraced and is currently shy of the 50.

FOR TODAY:

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 test of the BF786.

If we don’t get the set-up we are looking for then we don’t trade.

SHORT: Will be going short only IF:

We need price to test the BF786 followed by a bearish cs formation for a short entry setup. Not a high probability of that happening today. Will wait and see.

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 need a further 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 for the 618 entry will be 60-70 pips, and the 786 will be at the BF786 over coming sessions.

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