Trade Idea Wrap-up: GBP/USD – Sell at 1.2715

GBP/USD – 1.2635

Most recent candlesticks pattern   : N/A

Trend                                 : Near term down

Tenkan-Sen level                 : 1.2685

Kijun-Sen level                    : 1.2692

Ichimoku cloud top              : 1.2788

Ichimoku cloud bottom        : 1.2755

Original strategy :

Sell at 1.2715, Target: 1.2615, Stop: 1.2750

Position : – 

Target :  –

Stop : –

New strategy  :

Sell at 1.2715, Target: 1.2615, Stop: 1.2750

Position : –

Target :  –

Stop : –

As cable has fallen again and broke below indicated support at 1.2635, adding credence to our view that recent decline has resumed and bearishness remains for further fall to 12600-05, then towards 1.2575-80, however, near term oversold condition would limit downside to 1.2550 and reckon 1.2520-25 would hold from here, risk from there is seen for a rebound later. 

In view of this, we are looking to sell cable on recovery as 1.2715-20 should limit upside. Only above 1.2755-60 would abort and suggest an intra-day low is formed instead, bring a stronger rebound to 1.2780 but price should falter below said resistance at 1.2818.