GBP/USD – 1.3123
Most recent candlesticks pattern : N/A
Trend : Down
Tenkan-Sen level : 1.3100
Kijun-Sen level : 1.3076
Ichimoku cloud top : 1.3183
Ichimoku cloud bottom : 1.3130
Original strategy :
Bought at 1.3375, stopped at 1.3340
Position : – Long at 1.3375
Target : –
Stop : – 1.3340
New strategy :
Sell at 1.3170, Target: 1.3070, Stop: 1.3205
Position : –
Target : –
Stop : –
Cable met heavy selling pressure last week and dropped sharply to as low as 1.3027 before recovering and although current bounce suggests initial corrective raise to 1.3155-60 (50% Fibonacci retracement of 1.3292-1.3027) is likely, reckon upside would be limited to 1.3175-80 and bring another decline later, below 1.3065-75 would suggest the rebound from 1.3027 has ended, bring retest of this level, break there would extend recent decline to psychological support at 1.3000 next.
In view of this, we are looking to sell cable on recovery as 1.3170-80 should limit upside. Above 1.3200 would risk test of previous support at 1.3222-29 (now resistance) would abort and signal low has been formed instead, bring further gain to 1.3250 but price should falter below resistance at 1.3292.
