Trade Idea Wrap-up: GBP/USD – Buy at 1.2710

GBP/USD – 1.2775

Most recent candlesticks pattern   : N/A

Trend                                 : Near term down

Tenkan-Sen level                 : 1.2751

Kijun-Sen level                    : 1.2747

Ichimoku cloud top              : 1.2733

Ichimoku cloud bottom        : 1.2707

Original strategy :

Buy at 1.2710, Target: 1.2810, Stop: 1.2675

Position : – 

Target :  –

Stop : –

New strategy  :

Buy at 1.2710, Target: 1.2810, Stop: 1.2675

Position : –

Target :  –

Stop : –

As cable has risen again after finding renewed buying interest at 1.2706, suggesting the erratic rise from 1.2589 low is still in progress and upside bias is seen for further gain to 1.2780-85 (50% Fibonacci retracement of 1.2978-1.2589), then towards resistance at 1.2818, however, break of latter level is needed to retain bullishness and extend the aforesaid rise to 1.2830 (approx. 61.8% Fibonacci retracement). 

In view of this, would not chase this move here and would be prudent to buy cable on pullback as said support at 1.2706 should limit downside. Below 1.2680 would defer and suggest an intra-day top is formed instead, risk weakness to 1.2660 but support at 1.2640 should remain intact.