GBP/USD – 1.2743
Most recent candlesticks pattern : N/A
Trend : Near term down
Tenkan-Sen level : 1.2750
Kijun-Sen level : 1.2722
Ichimoku cloud top : 1.2807
Ichimoku cloud bottom : 1.2769
Original strategy :
Sold at 1.2760, Target: 1.2630, Stop: 1.2795
Position : – Short at 1.2760
Target : – 1.2630
Stop : – 1.2795
New strategy :
Hold short entered at 1.2760, Target: 1.2660, Stop: 1.2785
Position : – Short at 1.2760
Target : – 1.2660
Stop : – 1.2785
Although the British pound rebounded after falling to 1.2635 on Friday, as long as resistance at 1.2780 holds, bearishness remains for recent decline to resume after consolidation, below 1.2695-00 would suggest the rebound from 1.2635 has ended, bring further fall to 1.2660-70, however, reckon said last week’s low at 1.2635 would hold on first testing. A break below this level would extend weakness to 1.2616 (previous resistance turned support) and possibly towards 1.2575-80 but reckon downside would be limited to 1.2550.
In view of this, we are holding on to our short position entered at 1.2760. Above 1.2780 would defer and risk a stronger rebound to 1.2800-05 but break there is needed to signal a temporary low has been formed, bring further gain to 1.2830-35 but price should falter below 1.2870-75 and bring another decline later.
