Trade Idea : GBP/USD – Buy at 1.2855

GBP/USD – 1.2938

Most recent candlesticks pattern   : N/A

Trend                                 : Near term up

Tenkan-Sen level                 : 1.2918

Kijun-Sen level                    : 1.2905

Ichimoku cloud top              : 1.2854

Ichimoku cloud bottom        : 1.2831

Original strategy :

Buy at 1.2830, Target: 1.2945, Stop: 1.2795

Position : –

Target :  –

Stop : –

New strategy  :

Buy at 1.2855, Target: 1.2975, Stop: 1.2820

Position : –

Target :  –

Stop : –

As cable has surged again after brief pullback, adding credence to our bullish view that recent upmove has resumed and upside bias remains for further gain to 1.2970-75, then towards 1.2990-00 (1.236 times projection of 1.2109-1.2616 measuring from 1.2365 and psychological resistance), however, overbought condition should prevent sharp move beyond there and risk has increased for a retreat later. 

In view of this, would not chase this rise here and would be prudent to buy cable on pullback as downside should be limited to the upper Kumo (now at 1.2854) and bring another rise. Below 1.2815-20 would risk test of support at 1.2805 but break there is needed to signal top is formed, bring correction to 1.2770-75 first.