Trade Idea Wrap-up: GBP/USD – Sell at 1.3100

GBP/USD – 1.3043

Most recent candlesticks pattern   : N/A

Trend                                 : Near term up

Tenkan-Sen level                 : 1.3019

Kijun-Sen level                    : 1.3004

Ichimoku cloud top              : 1.2993

Ichimoku cloud bottom        : 1.2986

Original strategy :

Sell at 1.3060, Target: 1.2960, Stop: 1.3095

Position : – 

Target :  –

Stop : –

New strategy  :

Sell at 1.3100, Target: 1.2980, Stop: 1.3135

Position : –

Target :  –

Stop : –

Cable found support at 1.2959 on Friday and has rebounded again, suggesting the recovery from 1.2933 may bring further gain to resistance at 1.3062, however, if our view that top has been formed at 1.3126 is correct, upside would be limited to 1.3100 and bring another decline later, below 1.2985-90 would signal an intra-day top is formed but break of 1.2950-55 is needed to signal the rebound from 1.2933 has ended, bring weakness to 1.2932-33 (61.8% Fibonacci retracement of 1.2812-1.3126 and said support), break there would extend the fall from 1.3126 top to previous support at 1.2912. 

In view of this, we are looking to sell cable on further recovery as 1.3100-10 should limit upside. A firm break above 1.3100 would abort and suggest the fall from 1.3127 has ended instead, bring retest of this level but only break there would shift risk back to upside for further gain to 1.3150-60.