GBP/USD – 1.2515
Most recent candlesticks pattern : N/A
Trend : Near term up
Tenkan-Sen level : 1.2551
Kijun-Sen level : 1.2551
Ichimoku cloud top : 1.2557
Ichimoku cloud bottom : 1.2543
Original strategy :
Buy at 1.2490, Target: 1.2600, Stop: 1.2455
Position : –
Target : –
Stop : –
New strategy :
Buy at 1.2470, Target: 1.2590, Stop: 1.2435
Position : –
Target : –
Stop : –
Cable’s retreat after rising to 1.2616 yesterday suggests consolidation below this level would be seen and initial downside risk remains for weakness to 1.2490-00, however, reckon support at 1.2469 would limit downside and bring another upmove later, above said resistance at 1.2616 would extend recent rise from 1.2109 to 1.2635-40 but loss of upward momentum should prevent sharp move beyond 1.2670-80 and price should falter below previous resistance at 1.2706, risk from there is seen for a retreat later.
In view of this, would not chase this rise here and would be prudent to buy cable on further subsequent retreat as said support at 1.2469 (Friday’s low) should limit downside. Only below 1.2422-24 (38.2% Fibonacci retracement of 1.2109-1.2616 and previous support) would abort and signal top is formed, bring retracement of recent upmove to 1.2390-00 and possibly towards 1.2360-65 (50% Fibonacci retracement).
