Trade Idea Wrap-up: GBP/USD – Buy at 1.2790

GBP/USD – 1.2908

Most recent candlesticks pattern   : N/A

Trend                                 : Near term up

Tenkan-Sen level                 : 1.2883

Kijun-Sen level                    : 1.2879

Ichimoku cloud top              : 1.2914

Ichimoku cloud bottom        : 1.2906

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 has rebounded after intra-day brief fall to 1.2831, reckon upside would be limited to 1.2925-30 and near term downside risk remains for the corrective fall from 1.2965 to bring retracement of recent upmove, below said support at 1.2831 would extend weakness to 1.2790-95 (38.2% Fibonacci retracement of 1.2515-1.2965) where renewed buying interest should emerge, 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.