GBP/USD – 1.2788
Most recent candlesticks pattern  : N/A
Trend                                : Near term up
Tenkan-Sen level                : 1.2805
Kijun-Sen level                   : 1.2815
Ichimoku cloud top             : 1.2775
Ichimoku cloud bottom       : 1.2711
Original strategy :
Buy at 1.2710, Target: 1.2850, Stop: 1.2675
Position : –
Target :Â –
Stop : –
New strategy :
Buy at 1.2755, Target: 1.2855, Stop: 1.2720
Position : –
Target :Â –
Stop : –
Although cable has rebounded after finding support at 1.2770 and gain to 1.2855-60 cannot be ruled out, break there is needed to signal the pullback from 1.2906 has ended, bring retest of this level, break there would extend recent upmove to 1.2920-30 (2 times extension of 1.2365-1.2575 measuring from 1.2500), then 1.2950 but loss of near term upward momentum should prevent sharp move beyond 1.2990-00 (1.236 times projection of 1.2109-1.2616 measuring from 1.2365 and psychological resistance). If said resistance continues to hold, then further consolidation would take place and another retreat to 1.2755-60 (38.2% Fibonacci retracement of 1.2515-1.2906) cannot be ruled out before prospect of a rally.
In view of this, would not chase this rise here and would be prudent to buy cable on subsequent pullback as downside should be limited to 1.2740-50. Below 1.2710 (50% Fibonacci retracement) would defer and signal top has been formed, risk correction to 1.2660-65 (61.8% Fibonacci retracement of 1.2515-1.2906) but price should stay well above 1.2608-16 (previous resistance now support).
