Trade Idea Wrap-up: GBP/USD – Sell at 1.3040

GBP/USD – 1.2989

Most recent candlesticks pattern   : N/A

Trend                                 : Near term up

Tenkan-Sen level                 : 1.2996

Kijun-Sen level                    : 1.2987

Ichimoku cloud top              : 1.2998

Ichimoku cloud bottom        : 1.2987

Original strategy :

Sell at 1.3030, Target: 1.2930, Stop: 1.3065

Position : – 

Target :  –

Stop : –

New strategy  :

Sell at 1.3040, Target: 1.2940, Stop: 1.3075

Position : –

Target :  –

Stop : –

Cable recovered after falling to 1.2933 yesterday and minor consolidation would be seen, however, as the drop from 1.3126 signals a temporary top has possibly been formed there, reckon upside would be limited to 1.3025-30 and bring another decline later, below 1.2932-33 (61.8% Fibonacci retracement of 1.2812-1.3126 and said support would bring test of previous support at 1.2912 but break of latter level is needed to retain bearishness and extend the fall from 1.3126 top to 1.2880-85 first. 

In view of this, we are looking to sell cable on recovery as 1.3035-40 should limit upside. Only break of resistance at 1.3062 would abort and signal an intra-day low is formed instead, bring a stronger rebound towards 1.3090-00 but resistance at 1.3126 should remain intact.