GBP/USD – 1.2892
Most recent candlesticks pattern : N/A
Trend : Near term up
Tenkan-Sen level : 1.2920
Kijun-Sen level : 1.2906
Ichimoku cloud top : 1.2923
Ichimoku cloud bottom : 1.2902
Original strategy :
Buy at 1.2790, Target: 1.2910, Stop: 1.2755
Position : –
Target : –
Stop : –
New strategy :
Buy at 1.2790, Target: 1.2910, Stop: 1.2755
Position : –
Target : –
Stop : –
Although cable rebounded to 1.2948, the subsequent retreat after faltering below resistance at 1.2965 has retained our view that further consolidation below this level would be seen and another corrective fall to 1.2864 support is likely, below there would bring retracement of recent rise to 1.2840-45, then towards support at 1.2805 but reckon downside would be limited to 1.2790-95 (38.2% Fibonacci retracement of 1.2515-1.2965) and bring another rise later. Above 1.2948 would bring retest of 1.2965, break there would confirm upmove has resumed for headway towards 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 further subsequent pullback as downside should be limited to 1.2790-95. A drop below previous support at 1.2757 would abort and signal top is formed instead, bring correction to 1.2740 (50% Fibonacci retracement of 1.2515-1.2965) first.
