GBP/USD – 1.2478
Original strategy :
Sold at 1.2465, Target: 1.2365, Stop: 1.2500
Position : – Short at 1.2465
Target : – 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 : – 1.2365
Stop : – 1.2500
Cable’s rebound after holding above support at 1.2419 suggests further consolidation above this level would be seen, however, as long as indicated resistance at 1.2500 holds, mild downside bias remains for another fall, below said support at 1.2419 would bring test of 1.2400 but break there is needed to 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 1.2500 would abort and suggest low has been formed instead, risk a stronger rebound to 1.2525-30, then towards resistance at 1.2559.
