GBP/USD – 1.2785
Original strategy :
Sell at 1.2845, Target: 1.2745, Stop: 1.2880
Position : –
Target : –
Stop : –
New strategy :
Sell at 1.2850, Target: 1.2750, Stop: 1.2885
Position : –
Target : –
Stop : –
As the British pound has surged again after staged a strong rebound yesterday, suggesting further consolidation above last week’s low at 1.2635 would be seen and initial upside risk remains for gain to 1.2815-20, however, reckon 1.2845-50 (61.8% Fibonacci retracement of 1.2978-1.2635) would hold from here, bring retreat later, below 1.2720-25 would bring weakness to 1.2680-85 but break of latter level is needed to signal the rebound from 1.2635 has ended, then fall to 1.2650 would follow.
In view of this, we are looking to sell cable on recovery as 1.2845-50 should limit upside. Above 1.2870-80 would suggest recent decline has ended at 1.2635 instead, risk a stronger rebound to 1.2905-10 and possibly 1.2930 but price should falter well below resistance at 1.2978.
