Trade Idea Wrap-up: GBP/USD – Sell at 1.3100

GBP/USD – 1.3048

Most recent candlesticks pattern   : N/A

Trend                                 : Near term up

Tenkan-Sen level                 : 1.3031

Kijun-Sen level                    : 1.3039

Ichimoku cloud top              : 1.3046

Ichimoku cloud bottom        : 1.3022

Original strategy :

Sell at 1.3100, Target: 1.2980, Stop: 1.3135

Position : – 

Target :  –

Stop : –

New strategy  :

Sell at 1.3100, Target: 1.2980, Stop: 1.3135

Position : –

Target :  –

Stop : –

Although cable retreated after rising to 1.3084 yesterday, break of 1.2980-85 is needed to signal top is formed, bring further fall to 1.2950-55 but only below there would confirm the rebound from 1.2933 has ended, then another test of this support would follow, once this level is penetrated, this would add credence to our view that early fall from 1.3126 top has resumed for further weakness to previous support at 1.2912 which is likely to hold on first testing. 

In view of this, would not chase this fall here and we are looking to sell cable on subsequent recovery as 1.3100-10 should limit upside. A firm break above 1.3100 would abort and suggest the fall from 1.3127 has ended instead, bring retest of this level but only break there would shift risk back to upside for further gain to 1.3150-60.