GBP/USD – 1.3446
Most recent candlesticks pattern : N/A
Trend : Near term up
Tenkan-Sen level : 1.3457
Kijun-Sen level : 1.3481
Ichimoku cloud top : 1.3511
Ichimoku cloud bottom : 1.3453
Original strategy :
Buy at 1.3410, Target: 1.3540, Stop: 1.3375
Position : –
Target : –
Stop : –
New strategy :
Buy at 1.3380, Target: 1.3480, Stop: 1.3345
O.C.O.
Sell at 1.3500, Target: 1.3400, Stop: 1.3535
Position : –
Target : –
Stop : –
As cable has slipped again after meeting resistance at 1.3514, suggesting near term downside risk remains for the retreat from 1.3550 (last week’s high) to bring retracement of recent rise, hence weakness to 1.3400-05 is likely, however, reckon downside would be limited to 1.3380-85 (50% Fibonacci retracement of 1.3221-1.3550) and bring rebound to 1.3500 but upside should be limited to 1.3515-25, bring another corrective decline later.
In view of this, whilst we are still looking to buy cable on further corrective fall, we would also sell sterling on recovery as 1.3500 should limit upside. Above 1.3515-25 would signal the retreat from 1.3550 has ended, bring retest of this level, then 1.3575-80 but reckon 1.3600-10 would hold. Below 1.3345-50 (61.8% Fibonacci retracement of 1.3221-1.3550) would abort and signal top has been formed at 1.3550, bring further fall towards 1.3300-10.
