GBP/USD – 1.2158
Most recent candlesticks pattern : N/A
Trend : Near term down
Tenkan-Sen level : 1.2166
Kijun-Sen level : 1.2175
Ichimoku cloud top : 1.2235
Ichimoku cloud bottom : 1.2208
New strategy :
Sell at 1.2215, Target: 1.2115, Stop: 1.2250
Position : –
Target : –
Stop : –
As cable has remained under pressure after recent selloff, adding credence to our bearish view that recent decline from 1.2706 is still in progress and may extend further weakness to 1.2110-15, then 1.2090, however, loss of near term downward momentum should prevent sharp fall below 1.2070-75 and price should stay above 1.2050, risk from there is seen for a rebound later.
In view of this, would not chase this fall here and would be prudent to sell cable on recovery as 1.2210-15 should limit upside. Above resistance at 1.2253 would defer and suggest a temporary low is possibly formed instead, risk a stronger rebound to 1.2275-80 but price should falter below resistance at 1.2301 and bring another selloff.
