Trade Idea Wrap-up: GBP/USD – Buy at 1.3000

GBP/USD – 1.3092

Most recent candlesticks pattern   : N/A

Trend                                 : Near term up

Tenkan-Sen level                 : 1.3075

Kijun-Sen level                    : 1.3075

Ichimoku cloud top              : 1.3022

Ichimoku cloud bottom        : 1.2983

Original strategy :

Buy at 1.3000, Target: 1.3120, Stop: 1.2965

Position : –

Target :  –

Stop : –

New strategy  :

Buy at 1.3000, Target: 1.3120, Stop: 1.2965

Position : –

Target :  –

Stop : –

Although cable has risen again in NY morning, loss of near term upward momentum should prevent sharp move beyond 1.3140-50 and reckon 1.3175-80 would hold from here, risk from there has increased for a much needed correction to take place later today or tomorrow.

In view of this, would not chase this rise at current level and would be prudent to buy cable on subsequent pullback, below 1.3050 would bring minor correction to 1.3030-35 but reckon previous resistance at 1.2996 (now support) would limit downside and bring another rise. Only below the lower Kumo (now at 1.2983) would abort and signal top is formed instead, bring weakness to 1.2950 first.