GBP/USD – 1.2803
Original strategy :
Buy at 1.2755, Target: 1.2855, Stop: 1.2720
Position : –
Target :Â –
Stop : –
New strategy :
Buy at 1.2710, Target: 1.2850, Stop: 1.2675
Position : –
Target :Â –
Stop : –
Although cable 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 but 1.2700-10 should hold, bring another 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 1.2710 (50% Fibonacci retracement of 1.2515-1.2906), bring another rise. Below 1.2700 would defer and signal top has been formed, risk correction to 1.2660-65 (61.8% Fibonacci retracement of 1.2515-1.2906) and price should stay well above 1.2608-16 (previous resistance now support).
