GBP/USD – 1.3132
Most recent candlesticks pattern : N/A
Trend : Near term down
Tenkan-Sen level : 1.3120
Kijun-Sen level : 1.3130
Ichimoku cloud top : 1.3154
Ichimoku cloud bottom : 1.3118
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: 1.3175
Position : – Short at 1.3175
Target : – 1.3065
Stop : – 1.3175
Although the British pound has recovered after falling to 1.3086 yesterday and consolidation with initial upside bias would be seen, reckon the upper Kumo (now at 1.3154) would limit upside and bring another decline later, below said support would add credence to our bearish view that the rebound from 1.3039 has ended at 1.3178, bring further fall to 1.3055-60, then 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.
