GBP/USD – 1.2430
New strategy :
Stand aside
Position : –
Target :Â –
Stop : –
Although the British pound has retreated after meeting resistance at 1.2506 and test of support at 1.2419 cannot be ruled out, break of 1.2400 is needed to revive bearishness and add credence to our view that the rebound from 1.2377 has ended at 1.2559 earlier, bring further fall towards this support first. Looking ahead, only break there would extend recent fall from 1.2616 to 1.2350 and later towards 1.2325-30.
In view of this, would not chase this fall here and would be prudent to stand aside in the meantime. Above 1.2475-80 would bring another test of 1.2507 but only break there would shift risk back to upside for a stronger rebound to 1.2520-25, then towards indicated resistance at 1.2559. As near term outlook is still mixed, would be prudent to stand aside in the meantime.
