GBP/USD – 1.2920
New strategy :
Stand aside
Position : –
Target : –
Stop : –
Cable has finally retreated after intra-day brief rise to 1.2978, suggesting consolidation below this level would be seen and weakness to 1.2885-90 cannot be ruled out, however, break of indicated support at 1.2872 is needed to signal top has been formed, bring further weakness to 1.1245-50 and possibly test of key support 1.2830 which is likely to hold on first testing.
On the upside, expect recovery to be limited to 1.2945-50 and said resistance at 1.2978 should continue to hold, bring another retreat. Only break there would extend gain to 1.3000 but still reckon upside would be limited to 1.3015 resistance and recent high at 1.3048 should remain intact.
