Trade Idea : GBP/USD – Stand aside

GBP/USD – 1.3366

Most recent candlesticks pattern   : N/A

Trend                                 : Sideways

Tenkan-Sen level                 : 1.3375

Kijun-Sen level                    : 1.3360

Ichimoku cloud top              : 1.3377

Ichimoku cloud bottom        : 1.3376

New strategy  :

Stand aside

Position : –

Target :  –

Stop : –

As the British pound found support at 1.3332 yesterday and rebounded, retaining our view that further consolidation would be seen, however, reckon downside would be limited to support at 1.3331-32, bring another rebound. Only a drop below 1.3331 would signal the rebound from 1.3302 has ended and revive bearishness for a retest of 1.3302 first, break there would extend weakness towards 1.3265-70.

On the upside, whilst recovery to 1.3390-00 cannot be ruled out, reckon upside would be limited to said resistance at 1.3420 and bring another retreat later. Above 1.3420 would extend the rebound from 1.3302 to 1.3445-50, however, reckon indicated resistance at 1.3466 would hold from here, bring retreat later. As near term outlook is still mixed, would be prudent to stand aside for now.