Trade Idea : GBP/USD – Buy at 1.2790

GBP/USD – 1.2892

Most recent candlesticks pattern   : N/A

Trend                                 : Near term up

Tenkan-Sen level                 : 1.2920

Kijun-Sen level                    : 1.2906

Ichimoku cloud top              : 1.2923

Ichimoku cloud bottom        : 1.2902

Original strategy :

Buy at 1.2790, Target: 1.2910, Stop: 1.2755

Position : –

Target :  –

Stop : –

New strategy  :

Buy at 1.2790, Target: 1.2910, Stop: 1.2755

Position : –

Target :  –

Stop : –

Although cable rebounded to 1.2948, the subsequent retreat after faltering below resistance at 1.2965 has retained our view that further consolidation below this level would be seen and another corrective fall to 1.2864 support is likely, below there would bring retracement of recent rise to 1.2840-45, then towards support at 1.2805 but reckon downside would be limited to 1.2790-95 (38.2% Fibonacci retracement of 1.2515-1.2965) and bring another rise later. Above 1.2948 would bring retest of 1.2965, break there would confirm upmove has resumed for headway towards 1.2990-00 (1.236 times projection of 1.2109-1.2616 measuring from 1.2365 and psychological resistance). 

In view of this, would not chase this rise here and would be prudent to buy cable on further subsequent pullback as downside should be limited to 1.2790-95. A drop below previous support at 1.2757 would abort and signal top is formed instead, bring correction to 1.2740 (50% Fibonacci retracement of 1.2515-1.2965) first.