Trade Idea Update: GBP/USD – Sell at 1.3010

GBP/USD – 1.2975

Original strategy :

Sell at 1.3090, Target: 1.2990, Stop: 1.3125

Position : – 

Target :  –

Stop : –

New strategy  :

Sell at 1.3010, Target: 1.2915, Stop: 1.3045

Position : –

Target :  –

Stop : –

Cable has dropped after breaking support at 1.3005, suggesting top has been formed at 1.3126, hence consolidation with mild downside bias is seen for weakness to 1.3930-32 (61.8% Fibonacci retracement of 1.2812-1.3126), then test of previous support at 1.2912, however, break of latter level is needed to retain bearishness and extend the fall from 1.3126 top to 1.2880-85 first. 

In view of this, we are looking to sell cable on recovery but at a lower level as 1.3005-10 should limit upside. Only break of resistance at 1.3062 would abort and signal an intra-day low is formed instead, bring a stronger rebound towards 1.3090-00 but resistance at 1.3126 should remain intact.