GBP/USD – 1.2886
Original strategy :
Sell at 1.2920, Target: 1.2820, Stop: 1.2955
Position : –
Target : –
Stop : –
New strategy :
Sell at 1.2935, Target: 1.2835, Stop: 1.2970
Position : –
Target : –
Stop : –
As cable has recovered after falling to 1.2842 earlier this week, suggesting consolidation above this level would be seen and corrective bounce to 1.2920 cannot be ruled out, however, reckon previous support at 1.2933-40 would turn into resistance and limit upside, bring another decline later, below said support at 1.2842 would extend recent selloff to 1.2825-30 (61.8% projection of 1.3269-1.2940 measuring from 1.3032), having said that, oversold condition should limit downside to 1.2800 and reckon 1.2770 would hold from here, bring rebound later.
In view of this, would not chase this fall here and would be prudent to sell sterling on recovery as said previous support at 1.2933 should cap cable’s upside, bring another decline. Above 1.2950 would defer and risk a stronger rebound to 1.2990-00 before another decline.
