GBP/USD – 1.2460
Original strategy :
Sold at 1.2465, Target: 1.2365, Stop: 1.2500
Position : – Short at 1.2465
Target :Â – 1.2365
Stop : – 1.2500
New strategy :
Hold short entered at 1.2465, Target: 1.2365, Stop: 1.2500
Position : – Short at 1.2465
Target :Â – 1.2365
Stop : – 1.2500
Although cable has rebounded after finding support at 1.2419 and minor consolidation above this level would be seen, reckon the Kijun-Sen (now at 1.2475) would limit upside and bring another decline later, below said support at 1.2419 would extend weakness to 1.2400, break there would add credence to our view that the rebound from 1.2377 has ended at 1.2559, bring further fall towards support at 1.2377. 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, we are holding on to our short position entered at 1.2465 but one should exit on such decline. 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.
