GBP/USD – 1.2899
New strategy :
Stand aside
Position : –
Target : –
Stop : –
As sterling has remained confined within recent established range, retaining our view that further consolidation below indicated resistance at 1.2921 would be seen and weakness to 1.2845-46 (current level of the lower Kumo and Friday’s low) cannot be ruled out, however, break of 1.2830 support is needed to signal the rebound from 1.2769 has ended, bring further fall to 1.2800 but said support at 1.2769 should remain intact.
On the upside, above 1.2905 would bring another test of 1.2921-26 (resistance and previous support), however, break there is needed to signal low has been formed at 1.2769, bring further gain to 1.2940-45 (61.8% Fibonacci retracement of 1.3048-1.2769) and later towards 1.2970 but overbought condition should cap upside below 1.3000. As near term outlook is mixed, would be prudent to stand aside for now.
