GBP/USD – 1.2490
Original strategy :
Sell at 1.2500, Target: 1.2365, Stop: 1.2535
Position : –
Target : –
Stop : –
New strategy :
Stand aside
Position : –
Target : –
Stop : –
As cable has rebounded in NY morning, suggesting near term upside risk remains for the corrective bounce from 1.2377 (yesterday’s low) to extend gain to 1.2520-25, however, break of previous support at 1.2539 is needed to signal the fall from 1.2616 has ended, bring further rise to 1.2555-60 but reckon upside would be limited to 1.2595-00 and price should falter below resistance at 1.2616.
In view of this, would not chase this rise here and would be prudent to stand aside in the meantime. Below 1.2450-55 would suggest an intra-day top is possibly formed, bring weakness to 1.2425-30 but break of 1.2395-00 is needed to signal the rebound from 1.2377 has ended, brig retest of this level, then 1.2360-65 (50% Fibonacci retracement of 1.2109-1.2616), however, support at 1.2335 should limit downside and reckon 1.2300-05 (61.8% Fibonacci retracement) would hold.
