GBP/USD – 1.2879
Most recent candlesticks pattern : N/A
Trend : Near term up
Tenkan-Sen level : 1.2898
Kijun-Sen level : 1.2901
Ichimoku cloud top : 1.2952
Ichimoku cloud bottom : 1.2946
Original strategy :
Sell at 1.2900, Target: 1.2800, Stop: 1.2935
Position : –
Target : –
Stop : –
New strategy :
Sell at 1.2900, Target: 1.2800, Stop: 1.2935
Position : –
Target : –
Stop : –
As cable has dropped below support at 1.2903 (now resistance) on dovish BOE, signaling top is formed at 1.2991 earlier and consolidation with downside bias is seen for further fall to 1.2831 support, break there would add credence to this view and extend the fall from 1.2991 top to 1.2805 and later towards 1.2770 but reckon previous support at 1.2757 would hold from here.
In view of this, we are looking to sell cable on recovery as said resistance at 1.2903 should limit upside and bring another decline. Above 1.2930-35 would risk test of 1.2950-60 but break there is needed to signal low is formed, bring another bounce towards 1.2988-91 resistance but break of 1.2999-00 (1.236 times projection of 1.2109-1.2616 measuring from 1.2365 and psychological resistance) is needed to revive bullishness.
