GBP/USD – 1.2890
New strategy :
Sell at 1.2925, Target: 1.2825, Stop: 1.2960
Position : –
Target :Â –
Stop : –
Although cable staged a brief bounce to 1.2958, lack of follow through buying on break of previous resistance at 1.2949 and the subsequent retreat has retained our view that further choppy trading below recent high at 1.2991 would take place and mild downside bias remains for another fall to 1.2844 support, however, break there is needed to extend the fall from 1.2991 to 1.2831 support, then 1.2805.
In view of this, we are looking to sell cable on recovery as 1.2940 should limit upside. A firm break above said intra-day resistance at 1.2958 would abort and suggest correction from 1.2991 has ended at 1.2844, bring further gain to 1.2970 but said resistance at 1.2991 should hold on first testing. 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 bring resumption of upmove for headway to 1.3040-50 first.
