GBP/USD – 1.3140
Most recent candlesticks pattern : N/A
Trend : Near term down
Tenkan-Sen level : 1.3146
Kijun-Sen level : 1.3138
Ichimoku cloud top : 1.3159
Ichimoku cloud bottom : 1.3096
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: 1.3180
Position : – Short at 1.3175
Target : – 1.3045
Stop : – 1.3180
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 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.
