Trade Idea Wrap-up: GBP/USD – Hold short entered at 1.3175

GBP/USD – 1.3100

Most recent candlesticks pattern   : N/A

Trend                                 : Near term down

Tenkan-Sen level                 : 1.3127

Kijun-Sen level                    : 1.3133

Ichimoku cloud top              : 1.3144

Ichimoku cloud bottom        : 1.3117

Original strategy :

Sold at 1.3175, Target: 1.3045, Stop: 1.3180

Position : – Short at 1.3175

Target :  – 1.3045

Stop : – 1.3180

New strategy  :

Hold short entered at 1.3175, Target: 1.3065, Stop: 1.3180

Position : – Short at 1.3175

Target :  – 1.3065

Stop : – 1.3180

The British pound has dropped again after faltering below indicated resistance at 1.3178, retaining our bearishness and consolidation with downside bias remains for weakness towards 1.3055-60, however, break there is needed to signal the rebound from 1.3039 has ended at 1.3178, bring retest of this support. Looking ahead, only a drop below 1.3027 low 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.