GBP/USD – 1.3256
Most recent candlesticks pattern : N/A
Trend : Down
Tenkan-Sen level : 1.3244
Kijun-Sen level : 1.3220
Ichimoku cloud top : 1.3198
Ichimoku cloud bottom : 1.3151
New strategy :
Sell at 1.3315, Target: 1.3215, Stop: 1.3350
Position : –
Target : –
Stop : –
Although cable has surged again after finding renewed buying interest at 1.3175 yesterday and near term upside risk remains for the rise from 1.3027 low to bring retracement of recent decline, reckon upside would be limited to 1.3291-92 (61.8% Fibonacci retracement of 1.3455-1.3027 and previous resistance) and 1.3310-15 (50% Fibonacci retracement of intermediate fall from 1.3596-1.3027) should hold, bring retreat later. Below the Kijun-Sen (now at 1.3220) would bring weakness to 1.3195-00 but break of said support at 1.3175 is needed to signal top is formed.
In view of this, we are inclined to sell cable on further subsequent rise. Above 1.3340-50 would signal the rise from 1.3027 low is still in progress and may extend gain to 1.3375-80 (61.8% Fibonacci retracement of 1.3596-1.3027) but still reckon 1.3400 would hold from here due to overbought condition.
