GBP/USD – 1.2825
Most recent candlesticks pattern : N/A
Trend : Near term down
Tenkan-Sen level : 1.2811
Kijun-Sen level : 1.2790
Ichimoku cloud top : 1.2729
Ichimoku cloud bottom : 1.2728
Original strategy :
Buy at 1.2710, Target: 1.2810, Stop: 1.2675
Position : –
Target : –
Stop : –
New strategy :
Buy at 1.2780, Target: 1.2880, Stop: 1.2745
Position : –
Target : –
Stop : –
As cable has retreated after rising to 1.2861 in part due to cross-trading against euro, suggesting consolidation below this level would be seen and pullback to 1.2780-85 (50% Fibonacci retracement of 1.2706-1.2861) cannot be ruled out, however, reckon downside would be limited to 1.2760-65 (previous resistance and 61.8% Fibonacci retracement) and bring another rise later, above said resistance at 1.2861 would extend the erratic rise from 1.2589 low 1.2875-80 (100% projection of 1.2589-1.2760 measuring from 1.2706), then towards 1.2915-20 (1.236 times projection) but price should falter well below 1.2978-83 (previous resistance and 1.618 times projection).
In view of this, would not chase this move here and would be prudent to buy cable on pullback as 1.2780-85 should limit downside. Below previous resistance at 1.2760 would defer and signal top is formed instead, bring correction to 1.2730 but support at 1.2706 should hold from here.
