GBP/USD – 1.2451
Original strategy :
Buy at 1.2400, Target: 1.2500, Stop: 1.2365
Position : –
Target :Â –
Stop : –
New strategy :
Buy at 1.2355, Target: 1.2500, Stop: 1.2320
Position : –
Target :Â –
Stop : –
As cable has retreated after intra-day brief rise to 1.2507, suggesting consolidation below this level would be seen and pullback to 1.2400-10 is likely, however, reckon downside would be limited to 1.2350-55 (38.2% Fibonacci retracement of 1.2109-1.2507) and bring rebound later, above said resistance at 1.2507 would signal the rise from 1.2109 has resumed and extend gain to 1.2540-50 but loss of upward momentum would limit upside and price should falter below previous chart resistance at 1.2570.
In view of this, would not chase this move from here and we are looking to buy cable on subsequent pullback as 1.2350-55 should limit downside. Below strong support at 1.2335 would abort and signal top is formed instead, risk correction to 1.2305-10 (50% Fibonacci retracement of 1.2109-1.2507) first.
