GBP/USD – 1.2401
Most recent candlesticks pattern : N/A
Trend : Near term down
Tenkan-Sen level : 1.2387
Kijun-Sen level : 1.2418
Ichimoku cloud top : 1.2469
Ichimoku cloud bottom : 1.2465
Original strategy :
Sell at 1.2450, Target: 1.2350, Stop: 1.2485
Position : –
Target : –
Stop : –
New strategy :
Sell at 1.2450, Target: 1.2350, Stop: 1.2485
Position : –
Target : –
Stop : –
As the British pound found good support around 1.2365-66 and has recovered, suggesting consolidation above this level would be seen an above the Kijun-Sen (now at 1.2418) would bring recovery towards 1.2450-55 before prospect of another decline, below said support at 1.2365-66 would extend recent decline from 1.2616 to 1.2350, then towards 1.2325-30 but near term oversold condition should limit downside and reckon 1.2300 would hold from here.
In view of this, would not chase this fall here and would be prudent to sell cable on recovery as 1.2450-60 should limit upside. Above the upper Kumo (now at 1.2469) would defer and suggest low is formed instead, risk test of resistance at 1.2506 first, break there would confirm, then a stronger rebound to 1.2525-30 would follow.
