GBP/USD – 1.2784
Most recent candlesticks pattern : N/A
Trend : Near term up
Tenkan-Sen level : 1.2803
Kijun-Sen level : 1.2812
Ichimoku cloud top : 1.2808
Ichimoku cloud bottom : 1.2799
Original strategy :
Buy at 1.2710, Target: 1.2850, Stop: 1.2675
Position : –
Target : –
Stop : –
New strategy :
Buy at 1.2710, Target: 1.2850, Stop: 1.2675
Position : –
Target : –
Stop : –
Although cable recovered initially to 1.2858, as price has retreated again again after faltering below resistance at 1.2859, suggesting further consolidation would be seen and another test of Friday’s low at 1.2757 cannot be ruled out, however, reckon downside should be limited to 1.2700-10 (50% Fibonacci retracement of 1.2515-1.2906) and bring another rally, break of 1.2759 would signal the pullback from 1.2906 has ended, bring retest of this level, break there would extend recent upmove to 1.2920-30 (2 times extension of 1.2365-1.2575 measuring from 1.2500), then 1.2950 but loss of near term upward momentum should prevent sharp move beyond 1.2990-00 (1.236 times projection of 1.2109-1.2616 measuring from 1.2365 and psychological resistance).
In view of this, would not chase this rise here and would be prudent to buy cable on subsequent pullback as downside should be limited to 1.2710 (50% Fibonacci retracement of 1.2515-1.2906), bring another rise. Below 1.2700 would defer and signal top has been formed, risk correction to 1.2660-65 (61.8% Fibonacci retracement of 1.2515-1.2906) and price should stay well above 1.2608-16 (previous resistance now support).
