GBP/USD – 1.2950
Original strategy :
Buy at 1.2920, Target: 1.3020, Stop: 1.2885
Position : –
Target : –
Stop : –
New strategy :
Buy at 1.2900, Target: 1.3000, Stop: 1.2865
Position : –
Target : –
Stop : –
As cable surged again after finding renewed buying interest at 1.2873 yesterday, adding credence to our view that a temporary low has been formed at 1.2774 last week and bullishness remains for the rise from there to bring retracement of recent decline, hence further gain to 1.3000 and later towards previous resistance at 1.3032 would be seen, however, near term overbought condition should limit upside and reckon 1.3075-80 would hold from here.
In view of this, we are looking to buy sterling on pullback as 1.2900 should limit downside. Below 1.2895-00 would defer and risk test of said support at 1.2873 but only break there would signal first leg of upmove from 1.2774 has ended, risk weakness to 1.2840-50 but support at 1.2813 should remain intact, bring another rebound later.
