GBP/USD – 1.3106
Most recent candlesticks pattern : N/A
Trend : Near term down
Tenkan-Sen level : 1.3119
Kijun-Sen level : 1.3119
Ichimoku cloud top : 1.3135
Ichimoku cloud bottom : 1.3133
Original strategy :
Sold at 1.3175, Target: 1.3045, Stop: 1.3175
Position : – Short at 1.3175
Target : – 1.3045
Stop : – 1.3175
New strategy :
Hold short entered at 1.3175, Target: 1.3065, Stop: 1.3155
Position : – Short at 1.3175
Target : – 1.3065
Stop : – 1.3155
Although the British pound has recovered after falling to 1.3085 and consolidation would be seen, reckon resistance at 1.3153 would cap 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. Only 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.
