GBP/USD – 1.2685
Original strategy :
Sold at 1.2695, Target: 1.2585, Stop: 1.2730
Position : – Short at 1.2695
Target : – 1.2585
Stop : – 1.2730
New strategy :
Hold short entered at 1.2695, Target: 1.2595, Stop: 1.2710
Position : – Short at 1.2695
Target : – 1.2595
Stop : – 1.2710
Although cable has staged a strong rebound after intra-day brief fall to 1.2589, as long as 1.2710 holds, mild downside bias remains for another decline, below 1.2635-40 would bring another fall towards said support but break there is needed to retain bearishness and signal recent decline has resumed for weakness towards 1.2550, however, oversold condition should limit downside to 1.2520-25.
In view of this, we are holding on to our short position entered at 1.2695. Only above 1.2720-25 would abort and suggest low has been 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.
