GBP/USD – 1.3515
New strategy :
Stand aside
Position : –
Target : –
Stop : –
Despite falling to 1.3450 late Friday, lack of follow through selling on break of previous support at 1.3452 and the subsequent rebound suggest further consolidation would take place and recovery to 1.3585-90 cannot be ruled out, however, still reckon upside would be limited to 1.3615-20 and price should falter below last week’s high at 1.3658, bring another retreat later.
On the downside, below 1.3475 would bring another fall towards 1.3450 support but a firm break below there is needed to retain bearishness and signal top has been formed at 1.3658, bring retracement of recent rise towards 1.3400-05 (50% Fibonacci retracement of 1.3153-1.3658). As near term outlook is still mixed, would be prudent to stand aside for now.
