GBP/USD – 1.2673
Original strategy :
Sold at 1.2760, met target at 1.2660
Position : – Short at 1.2760
Target : – 1.2660
Stop : –
New strategy :
Look to sell again higher
Position : –
Target : –
Stop : –
As the British pound has retreated after faltering below indicated resistance at 1.2780, adding credence to our bearish view that the rebound from 1.2635 has ended at 1.2780 (our short position entered at 1.2760 just met our downside target at 1.2660 with 100 points profit) and bearishness remains for retest of said support at 1.2635, however, break there is needed to confirm recent decline has resumed for weakness to 1.2616 (previous resistance turned support) and possibly towards 1.2575-80 but reckon downside would be limited to 1.2550.
As we have taken profit on our short position entered at 1.2760, would not chase this fall here and would be prudent to stand aside for now. Above 1.2710-15 would prolong consolidation and risk recovery to 1.2745-50 but said resistance at 1.2780 should limit upside and bring another decline. 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.
