GBP/USD – 1.2800
Most recent candlesticks pattern : N/A
Trend : Near term down
Tenkan-Sen level : 1.2790
Kijun-Sen level : 1.2804
Ichimoku cloud top : 1.2862
Ichimoku cloud bottom : 1.2833
New strategy :
Buy at 1.2770, Target: 1.2870, Stop: 1.2735
Position : –
Target : –
Stop : –
Although cable has remained under pressure and near term downside risk remains for recent selloff to extend one more fall, loss of downward momentum should prevent sharp fall below 1.2750-55, risk from there has increased for a rebound to take place soon, above 1.2845-50 would suggest a temporary low is possibly formed, bring a stronger rebound to 1.2870, break there would add credence to this view, then retracement of recent decline would commence for further gain to 1.2900.
In view of this, we are inclined to turn long on next decline. Below 1.2740-50 would risk weakness to 1.2720-25, however, still reckon downside would be limited to 1.2700-05 (100% projection of 1.3269-1.2940 measuring from 1.3032) and risk from there remains for another rebound to take place later.
