Trade Idea : GBP/USD – Buy at 1.2780

GBP/USD – 1.2825

Most recent candlesticks pattern   : N/A

Trend                                 : Near term down

Tenkan-Sen level                 : 1.2811

Kijun-Sen level                    : 1.2790

Ichimoku cloud top              : 1.2729

Ichimoku cloud bottom        : 1.2728

Original strategy :

Buy at 1.2710, Target: 1.2810, Stop: 1.2675

Position : – 

Target :  –

Stop : –

New strategy  :

Buy at 1.2780, Target: 1.2880, Stop: 1.2745

Position : –

Target :  –

Stop : –

As cable has retreated after rising to 1.2861 in part due to cross-trading against euro, suggesting consolidation below this level would be seen and pullback to 1.2780-85 (50% Fibonacci retracement of 1.2706-1.2861) cannot be ruled out, however, reckon downside would be limited to 1.2760-65 (previous resistance and 61.8% Fibonacci retracement) and bring another rise later, above said resistance at 1.2861 would extend the erratic rise from 1.2589 low 1.2875-80 (100% projection of 1.2589-1.2760 measuring from 1.2706), then towards 1.2915-20 (1.236 times projection) but price should falter well below 1.2978-83 (previous resistance and 1.618 times projection). 

In view of this, would not chase this move here and would be prudent to buy cable on pullback as 1.2780-85 should limit downside. Below previous resistance at 1.2760 would defer and signal top is formed instead, bring correction to 1.2730 but support at 1.2706 should hold from here.