Trade Idea Wrap-up: GBP/USD – Sell at 1.3055

GBP/USD – 1.2980

Most recent candlesticks pattern   : N/A

Trend                                 : Near term down

Tenkan-Sen level                 : 1.3001

Kijun-Sen level                    : 1.3004

Ichimoku cloud top              : 1.3126

Ichimoku cloud bottom        : 1.3045

Original strategy :

Sell at 1.3055, Target: 1.2955, Stop: 1.3090

Position : –

Target :  –

Stop : –

New strategy  :

Sell at 1.3055, Target: 1.2955, Stop: 1.3090

Position : –

Target :  –

Stop : –

As cable has fallen again after faltering below resistance at 1.3059, suggesting recent decline from 1.3269 top has resumed and may extend further weakness to 1.2950, however, near term oversold condition should precinct sharp fall below previous chart support at 1.2933 and reckon 1.2900 would hold from here, risk from there has increased for a rebound to take place later. 

In view of this, would not chase this fall here and we are looking to sell cable on recovery as said resistance at 1.3059 should limit upside and bring another decline. Above 1.3090 would risk test of previous support at 1.3112 but only break there would signal low is formed instead.