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

GBP/USD – 1.2782

Most recent candlesticks pattern   : N/A

Trend                                 : Near term down

Tenkan-Sen level                 : 1.2783

Kijun-Sen level                    : 1.2772

Ichimoku cloud top              : 1.2754

Ichimoku cloud bottom        : 1.2749

Original strategy :

Sold at 1.2790, stopped at 1.2800

Position : –  Short at 1.2790

Target :  –

Stop : – 1.2800

New strategy  :

Stand aside

Position : –

Target :  –

Stop : –

Although the British pound edged higher in NY morning and gain towards indicated resistance at 1.2818 cannot be ruled out, break there is needed to signal the erratic rise from 1.2635 low is still in progress and may extend gain to 1.2845-50 (61.8% Fibonacci retracement of 1.2978-1.2635) but upside should be limited to 1.2870-80 and price should falter below 1.2900, bring another decline later. 

In view of this, would not chase this rise here and would be prudent to sell cable on further subsequent recovery, Below 1.2720-25 would suggest an intra-day top is formed, bring test of indicated support at 1.2690 but break there is needed to revive bearishness and signal the rebound from 1.2635 has ended, bring further fall to 1.2650, then towards said support at 1.2635.