Trade Idea Wrap-up: GBP/USD – Stand aside

GBP/USD – 1.2951

Most recent candlesticks pattern   : N/A

Trend                                 : Near term up

Tenkan-Sen level                 : 1.2932

Kijun-Sen level                    : 1.2935

Ichimoku cloud top              : 1.2963

Ichimoku cloud bottom        : 1.2935

Original strategy :

Sell at 1.2960, Target: 1.2860, Stop: 1.2995

Position : –

Target :  –

Stop : –

New strategy  :

Stand aside

Position : –

Target :  –

Stop : –

Despite intra-day euro-led retreat to 1.2903, as cable found good support there and has rebounded in NY morning, suggesting an intra-day low is possibly formed and consolidation with mild upside bias is seen for gain to 1.2960-65, however, break of indicated resistance at 1.2991 is needed to revive bullishness and signal recent upmove has resumed and extend gain to 1.2999-00 (1.236 times projection of 1.2109-1.2616 measuring from 1.2365 and psychological resistance), then towards 1.3040-50 which is likely to hold from here due to near term overbought condition. 

In view of this, would be prudent to stand aside in the meantime. Below said support at 1.2903 would revive near term bearishness and suggest a temporary top has been formed at 1.2991, brig correction to 1.2875-80 but price should stay well above last week’s low at 1.2831, risk from there is seen for another rebound later.