GBP/USD – 1.3154
Most recent candlesticks pattern : N/A
Trend : Near term down
Tenkan-Sen level : 1.3164
Kijun-Sen level : 1.3123
Ichimoku cloud top : 1.3164
Ichimoku cloud bottom : 1.3078
Original strategy :
Sold at 1.3175, Target: 1.3045, Stop: 1.3210
Position : – Short at 1.3175
Target : – 1.3045
Stop : – 1.3210
New strategy :
Hold short entered at 1.3175, Target: 1.3045, Stop: 1.3210
Position : – Short at 1.3175
Target : – 1.3045
Stop : – 1.3210
Although cable staged another strong rebound since yesterday, as this move from 1.3039 is viewed as retracement of last week’s selloff, reckon upside would be limited and mild downside bias remains for test of the Kijun-Sen (now at 1.3123), break there would suggest an intra-day top is formed, bring weakness to 1.3095-00 but below 1.3065-70 is needed to signal the rebound from 1.3039 has ended and bring retest of recent low at 1.3027. Looking ahead, only a drop below this level would confirm early downtrend has resumed for weakness to psychological support at 1.3000, then towards 1.2970-75.
In view of this, we are holding on to our short position entered at 1.3175. Above 1.3175-80 would risk gain to 1.3200, break there would defer and prolong choppy trading, risk a stronger rebound to 1.3235-40 first.
