GBP/USD – 1.2918
Original strategy :
Sold at 1.2900, stopped at 1.2935
Position : – Short at 1.2900
Target :Â –
Stop : – 1.2935
New strategy :
Stand aside
Position : –
Target :Â –
Stop : –
Despite falling marginally to 1.2844 on Friday, the subsequent stronger-than-expected rebound suggests the fall from 1.2991 has ended there, hence consolidation with mild upside bias is seen for test of 1.2949 resistance but break there is needed to add credence to this view, bring further gain to 1.2970 but said resistance at 1.2991 should hold from here. Only a break of 1.2999-00 (1.236 times projection of 1.2109-1.2616 measuring from 1.2365 and psychological resistance) would revive bullishness and extend recent upmove to 1.3040-50 first.
In view of this, would not chase this rise here and would be prudent to stand aside for now. Below the Kijun-Sen (now at 1.2893) would bring weakness to 1.2860-65 but only break there would revive bearishness for test of 1.2844 support, break there would extend the fall from 1.2991 top to 1.2831 support, then 1.2805.
