GBP/USD – 1.2432
Most recent candlesticks pattern : N/A
Trend : Near term down
Tenkan-Sen level : 1.2458
Kijun-Sen level : 1.2478
Ichimoku cloud top : 1.2520
Ichimoku cloud bottom : 1.2481
New strategy :
Sell at 1.2465, Target: 1.2365, Stop: 1.2500
Position : –
Target : –
Stop : –
As cable has dropped again after meeting renewed selling interest at 1.2496 earlier today and broke below indicated support at 1.2433, adding credence to our view that the rebound from 1.2377 has ended at 1.2559, hence further weakness to 1.2400-05 and later towards support at 1.2377 would be seen. Looking ahead, only a drop below 1.2377 would confirm the fall from 1.2616 is still in progress for subsequent decline towards key support at 1.2335.
In view of this, would not chase this fall here and would be prudent to sell cable on recovery as 1.2465 (previous support turned resistance) should limit upside. Only break of said resistance at 1.2496 would abort and suggest an intra-day low is formed instead, risk a stronger rebound to 1.2525-30.
