GBP/USD – 1.2718
Original strategy :
Sold at 1.2695, stopped at 1.2710
Position : – Short at 1.2695
Target : –
Stop : – 1.2710
New strategy :
Stand aside
Position : –
Target : –
Stop : –
Cable’s intra-day rebound dampened our bearishness and suggests a temporary ow has been formed at 1.2589, hence upside risk remains for this move to bring retracement of recent decline to 1.2755-60, however, reckon upside would be limited to 1.2780-85 (50% Fibonacci retracement of 1.2978-1.2589) and price should falter well below resistance at 1.2818, bring another selloff next week.
In view of this, would not chase this move here and would be prudent to stand aside for now. Below 1.2690-95 would bring weakness towards 1.2640-50 but break of latter level is needed to signal the rebound from 1.2589 has ended, bring retest of this level later.
