GBP/USD – 1.2498
New strategy :
Stand aside
Position : –
Target : –
Stop : –
As cable found good support at 1.2433 on Friday and staged another strong rebound on active cross-trading in sterling, suggesting the erratic rise from 1.2377 (last week’s low) is still in progress and may extend gain towards 1.2570-75, however, as broad outlook remains consolidative, reckon upside would be limited to 1.2595-00 and price should falter below last week’s high at 1.2616, bring retreat later.
In view of this, would not chase this rise here and would be prudent to stand aside in the meantime. Below 1.2480 would bring weakness to the upper Kumo (now at 1.2469) but said support at 1.2433 should remain intact. Only a drop below 1.2433 support would revive bearishness and suggest the rebound from 1.2377 has ended, bring weakness to 1.2400, break there would confirm and retest of 1.2377 would follow.
