GBP/USD – 1.2407
Most recent candlesticks pattern : N/A
Trend : Near term up
Tenkan-Sen level : 1.2417
Kijun-Sen level : 1.2487
Ichimoku cloud top : 1.2567
Ichimoku cloud bottom : 1.2543
Original strategy :
Bought at 1.2470, stopped at 1.2435
Position : – Long at 1.2470
Target : –
Stop : – 1.2435
New strategy :
Sell at 1.2485, Target: 1.2365, Stop: 1.2520
Position : –
Target : –
Stop : –
As cable has dropped sharply since yesterday, suggesting top has been formed at 1.2616 and the selloff from there is likely to bring retracement of recent upmove, hence further weakness to 1.2360-65 (50% Fibonacci retracement of 1.2109-1.2616) would be seen, however, loss of near term downward momentum should prevent sharp fall below 1.2335 support and reckon 1.2300-05 (61.8% Fibonacci retracement) would hold from here, bring rebound later.
In view of this, we are looking to turn short on recovery as the Kijun-Sen (now at 1.2486) should limit upside and bring decline. Above 1.2500-10 would defer but only break of previous support at 1.2539 would abort and signal the fall from 1.2616 has ended instead, bring rebound to 1.2560-65 first.
