HomeTrade IdeasCandlesticks IntradayTrade Idea : GBP/USD - Hold short entered at 1.2760

Trade Idea : GBP/USD – Hold short entered at 1.2760

GBP/USD – 1.2743

Most recent candlesticks pattern   : N/A

Trend                                 : Near term down

Tenkan-Sen level                 : 1.2750

Kijun-Sen level                    : 1.2722

Ichimoku cloud top              : 1.2807

Ichimoku cloud bottom        : 1.2769

Original strategy :

Sold at 1.2760, Target: 1.2630, Stop: 1.2795

Position : – Short at 1.2760

Target :  – 1.2630

Stop : – 1.2795

New strategy  :

Hold short entered at 1.2760, Target: 1.2660, Stop: 1.2785

Position : – Short at 1.2760

Target :  – 1.2660

Stop : – 1.2785

Although the British pound rebounded after falling to 1.2635 on Friday, as long as resistance at 1.2780 holds, bearishness remains for recent decline to resume after consolidation, below 1.2695-00 would suggest the rebound from 1.2635 has ended, bring further fall to 1.2660-70, however, reckon said last week’s low at 1.2635 would hold on first testing. A break below this level would extend weakness to 1.2616 (previous resistance turned support) and possibly towards 1.2575-80 but reckon downside would be limited to 1.2550.

In view of this, we are holding on to our short position entered at 1.2760. Above 1.2780 would defer and risk a stronger rebound to 1.2800-05 but break there is needed to signal a temporary low has been formed, bring further gain to 1.2830-35 but price should falter below 1.2870-75 and bring another decline later.

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