Trade Idea : GBP/USD – Sell at 1.2695

GBP/USD – 1.2610

Most recent candlesticks pattern   : N/A

Trend                                 : Near term down

Tenkan-Sen level                 : 1.2622

Kijun-Sen level                    : 1.2681

Ichimoku cloud top              : 1.2769

Ichimoku cloud bottom        : 1.2752

Original strategy :

Sell at 1.2715, Target: 1.2615, Stop: 1.2750

Position : – 

Target :  –

Stop : –

New strategy  :

Sell at 1.2695, Target: 1.2585, Stop: 1.2730

Position : –

Target :  –

Stop : –

As cable has remained under pressure after breaking below indicated previous support at 1.2635, adding credence to our view that recent decline is still in progress and downside bias remains for further fall towards 1.2575-80, however, near term oversold condition would limit downside to 1.2550 and reckon 1.2520-25 would hold from here, risk from there is seen for a rebound later. 

In view of this, we are looking to sell cable on recovery as 1.2695-00 should limit upside. Only above 1.2720-25 would abort and suggest an intra-day low is formed instead, bring a stronger rebound to 1.2755-60 and possibly 1.2780 but price should falter below indicated strong resistance at 1.2818.