GBP/USD – 1.3421
Most recent candlesticks pattern : N/A
Trend : Near term up
Tenkan-Sen level : 1.3422
Kijun-Sen level : 1.3451
Ichimoku cloud top : 1.3485
Ichimoku cloud bottom : 1.3479
Original strategy :
Sold at 1.3440, Target: 1.3340, Stop: 1.3475
Position : – Short at 1.3440
Target : – 1.3340
Stop : – 1.3475
New strategy :
Hold short entered at 1.3440, Target: 1.3340, Stop: 1.3475
Position : – Short at 1.3440
Target : – 1.3340
Stop : – 1.3475
Cable’s anticipated selloff has reinforced our view that top has been formed at 1.3550 and consolidation with downside bias remains for the fall from 1.3550 to bring retracement of recent rise, hence further weakness to 1.3340-50 (61.8% Fibonacci retracement of 1.3221-1.3550) would be seen, however, near term oversold condition should prevent sharp fall below 1.3300 and reckon 1.3260-65 would hold, bring rebound later.
In view of this, we are holding on to our short position entered at 1.3440. Above the Kijun-Sen (now at 1.3451) would defer and risk test of resistance at 1.3483 but only break there would signal an intra-day low is formed instead, bring another bounce to 1.3530-35 first.
