Trade Idea Wrap-up: GBP/USD – Exit long entered at 1.3085

GBP/USD – 1.3085

Most recent candlesticks pattern   : N/A

Trend                                 : Near term up

Tenkan-Sen level                 : 1.3118

Kijun-Sen level                    : 1.3096

Ichimoku cloud top              : 1.3042

Ichimoku cloud bottom        : 1.3036

Original strategy :

Bought at 1.3085, Target: 1.3185, Stop: 1.3050

Position : –  Long at 1.3085

Target :  – 1.3185

Stop : – 1.3050

New strategy  :

Exit long entered at 1.3085

Position : – Long at 1.3085

Target :  –

Stop : –

Despite intra-day marginal rise to 1.3159, the subsequent sharp retreat suggests top has possibly been formed there and downside risk has increased for retracement of recent upmove to 1.3035-40, however, only break of support at 1.2999 would confirm recent upmove has ended, bring further fall to 1.2980 and later towards 1.2955-60.

In view of this, would be prudent to exit long entered at 1.3085 and stand aside in the meantime. Above 1.3120 would bring recovery to 1.3140 but only break of said resistance at 1.3159 would revive bullishness and signal recent upmove has resumed for headway to 1.3185-90 and then 1.3210-20.