GBP/USD – 1.3078
New strategy :
Sell at 1.3130, Target: 1.3030, Stop: 1.3165
Position : –
Target : –
Stop : –
As cable met renewed selling interest at 1.3165 and has dropped sharply on dollar’s broad-based rebound, suggesting the selloff from 1.3269 top is still in progress and may extend weakness to 1.3062-61 (previous support and 61.8% Fibonacci retracement of 1.2933-1.3269), below there would bring further fall to 1.3025-30 but price should stay above support at 1.2999, bring rebound later.
In view of this, we are looking to sell cable on recovery as 1.3130-40 should limit upside. Only break of 1.3165 is needed to signal low is formed instead, bring a stronger rebound to 1.3200 but upside should be limited to 1.3240-50 and price should falter below said resistance at 1.3269.
