GBP/USD – 1.3135
Most recent candlesticks pattern : N/A
Trend : Near term up
Tenkan-Sen level : 1.3132
Kijun-Sen level : 1.3079
Ichimoku cloud top : 1.3037
Ichimoku cloud bottom : 1.3036
Original strategy :
Sold at 1.3100, stopped at 1.3135
Position : – Short at 1.3100
Target : –
Stop : – 1.3135
New strategy :
Buy at 1.3085, Target: 1.3185, Stop: 1.3050
Position : –
Target : –
Stop : –
Cable found decent demand just below 1.3000 level and has rallied on back of dollar’s broad-based selloff, signal recent upmove is still in progress and upside bias is seen for further gain to 1.3160, then 1.3185-90, however, near term overbought condition should prevent sharp move beyond 1.3210-20 and price should falter below 1.3240-50, risk from there is seen for a retreat later.
In view of this, would not chase this rise here and we are looking to buy sterling on subsequent pullback as previous resistance at 1.3084 should turn into support and contain cable’s downside, bring another rise. Below 1.3050 would risk weakness to 1.3030-35 but break of latter level is needed to signal top is formed, then correction to 1.2999 support would follow.
