Trade Idea : GBP/USD – Hold short entered at 1.2695

GBP/USD – 1.2702

Most recent candlesticks pattern   : N/A

Trend                                 : Near term down

Tenkan-Sen level                 : 1.2671

Kijun-Sen level                    : 1.2672

Ichimoku cloud top              : 1.2702

Ichimoku cloud bottom        : 1.2650

Original strategy :

Sold at 1.2695, Target: 1.2595, Stop: 1.2710

Position : –  Short at 1.2695

Target :  – 1.2595

Stop : – 1.2710

New strategy  :

Hold short entered at 1.2695, Target: 1.2595, Stop: 1.2710

Position : – Short at 1.2695

Target :  – 1.2595

Stop : – 1.2710

Although cable has rebounded again and upside risk remains, as long as 1.2710 holds, mild downside bias remains for another decline, below 1.2635-40 would bring another fall towards said support but break there is needed to retain bearishness and signal recent decline has resumed for weakness towards 1.2550, however, oversold condition should limit downside to 1.2520-25. 

In view of this, we are holding on to our short position entered at 1.2695. Only above 1.2720-25 would abort and suggest low has been formed instead, bring a stronger rebound to 1.2755-60 and possibly 1.2780 but price should falter below indicated strong resistance at 1.2818.