GBP/USD – 1.3045
Most recent candlesticks pattern : N/A
Trend : Near term down
Tenkan-Sen level : 1.3043
Kijun-Sen level : 1.3037
Ichimoku cloud top : 1.3147
Ichimoku cloud bottom : 1.3071
Original strategy :
Sell at 1.3110, Target: 1.3010, Stop: 1.3145
Position : –
Target : –
Stop : –
New strategy :
Sell at 1.3110, Target: 1.3010, Stop: 1.3145
Position : –
Target : –
Stop : –
As cable has recovered after marginal fall to 1.3014 yesterday, suggesting consolidation above this level would be seen and test of the lower Kumo (now at 1.3071) cannot be ruled out, however, reckon upside would be limited and previous support at 1.3112 should turn into resistance, renewed selling interest should emerge there and bring another decline later to 1.3005-10 (100% projection of 1.3269-1.3112 measuring from 1.3165) but a break below support at 1.2999 is needed to retain bearishness, then subsequent fall to 1.2986 (61.8% Fibonacci retracement of 1.2812-1.3269) and possibly 1.2955-60 would follow.
In view of this, we are looking to sell cable on recovery as previous support at 1.3112 should limit upside. Above the upper Kumo (now at 1.3147) would risk test of resistance at 1.3165 but only break above there would 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.
