Trade Idea Wrap-up: GBP/USD – Buy at 1.3280

GBP/USD – 1.3359

Most recent candlesticks pattern   : N/A

Trend                                 : Near term up

Tenkan-Sen level                 : 1.3347

Kijun-Sen level                    : 1.3347

Ichimoku cloud top              : 1.3311

Ichimoku cloud bottom        : 1.3265

Original strategy :

Buy at 1.3280, Target: 1.3380, Stop: 1.3245

Position : –

Target :  –

Stop : –

New strategy  :

Buy at 1.3280, Target: 1.3380, Stop: 1.3245

Position : –

Target :  –

Stop : –

As cable has maintained a firm undertone after breaking above previous resistance at 1.3338, adding credence to our view that the erratic rise from 1.3027 low is still in progress and bullishness remains for this move to extend gain to 1.3395-00, however, reckon upside would be limited to 1.3417-20 (61.8% Fibonacci retracement of 1.3658-1.3027) would hold from here due to loss of near term upward momentum. 

In view of this, we are looking to buy sterling on pullback as 1.3270-80 should limit downside. Below 1.3250 would defer and risk correction to 1.3230 but only break of support at 1.3209-13 would abort and signal a temporary top is formed instead, bring further weakness towards support at 1.3170.