Candlesticks Intraday

Trade Idea Wrap-up: GBP/USD - Buy at 1.2865

Typography

GBP/USD - 1.2948


Most recent candlesticks pattern   : N/A

Trend                                 : Near term up


Tenkan-Sen level                 : 1.2954

Kijun-Sen level                    : 1.2946

Ichimoku cloud top              : 1.2936

Ichimoku cloud bottom        : 1.2918


Original strategy :

Buy at 1.2865, Target: 1.3000, Stop: 1.2830

Position : - 

Target :  -

Stop : -


New strategy  :

Buy at 1.2865, Target: 1.3000, Stop: 1.2830

Position : -

Target :  -

Stop : -


Although the British pound has recovered after falling to 1.2893, reckon upside would be limited to 1.2980-85 and near term downside risk remains for the corrective fall from 1.3030 (last week’s high) to bring retracement of recent upmove to 1.2880-85 (38.2% Fibonacci retracement of 1.2640-1.3030), however, downside should be limited to 1.2865-70 and bring another upmove later, above 1.2980-85 would signal low is formed, bring rebound to 1.3000 but break of said resistance at 1.3030 is needed to signal recent upmove has resumed and extend further gain towards recent high 1.3048. 

In view of this, we are looking to buy cable again on further corrective fall as previous resistance at 1.2861 should turn into support and contain downside, bring another rise. Below 1.2830-35 (50% Fibonacci retracement of 1.2640-1.3030) would abort and signal top is formed, bring further fall towards support at 1.2794.

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Author: Action Forex
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