Trade Idea Wrap-up: GBP/USD – Buy at 1.2220

GBP/USD – 1.2258

Most recent candlesticks pattern   : N/A

Trend                                 : Near term down

Tenkan-Sen level                 : 1.2271

Kijun-Sen level                    : 1.2267

Ichimoku cloud top              : 1.2294

Ichimoku cloud bottom        : 1.2251

Original strategy :

Buy at 1.2220, Target: 1.2340, Stop: 1.2185

Position : –

Target :  –

Stop : –

New strategy  :

Buy at 1.2220, Target: 1.2340, Stop: 1.2185

Position : –

Target :  –

Stop : –

Although cable dropped to as low as 1.2214 late last week, the subsequent rebound suggests consolidation above this level would be seen with mild upside bias for recovery to 1.2315-20 (38.2% Fibonacci retracement of 1.2479-1.2214), above there would extend gain to 1.2347 (50% Fibonacci retracement and previous support), however, reckon upside would be limited to 1.2375-80 (61.8% Fibonacci retracement of 1.2479-1.2214) and bring another decline later. 

In view of this, we are looking to turn long on dips but one should take profit on such a rebound. Below said support at 1.2214 would extend recent decline from 1.2706 top to 1.2200, then towards 1.2170-75 but reckon 1.2150 would hold from here, risk from there is seen for another rebound.