GBP/USD – 1.2218
Original strategy :
Bought at 1.2215, Target: 1.2320, Stop: 1.2180
Position : – Long at 1.2215
Target :Â – 1.2320
Stop : – 1.,2180
New strategy :
Hold long entered at 1.2215, Target: 1.2320, Stop: 1.2180
Position : – Long at 1.2215
Target :Â – 1.2320
Stop : – 1.2180
Current rally above indicated resistance at 1.2195 suggests a temporary low is possibly formed at 1.2135 last week and consolidation with upside bias is seen for retracement of recent decline, hence further gain to 1.2260-65 (38.2% Fibonacci retracement of 1.2471-1.2135) would be seen, however, break of 1.2301-03 (previous resistance and 50% Fibonacci retracement) is needed to signal low is formed, bring a stronger rebound to 1.2340-45 (61.8% Fibonacci retracement) later.
In view of this, we are holding on to our long position entered at 1.2215\. Below the Kijun-Sen (now at 1.2190) would defer and risk weakness to 1.2170 but said support at 1.2135 should hold. Only break there would abort and signal recent decline has resumed and extend weakness to 1.2100.
