GBP/USD – 1.3130
New strategy :
Stand aside
Position : –
Target : –
Stop : –
Despite rising to 1.3152 on Friday, as cable has retreated after faltering below indicated resistance at 1.3159 (last week’s high), retaining our view that further consolidation below this level would be seen and pullback to the lower Kumo (now at 1.3079) cannot be ruled out, however, reckon support at 1.3052 would hold, bring further sideways trading. Only a drop below tis support would signal a temporary top has been formed, bring retracement of recent upmove to 1.3030, then towards support at 1.2999 which is expected to hold from here.
On the upside, above said resistance at 1.3152-59 would revive bullishness and signal recent upmove has resumed and extend further gain to 1.3185-90 and then 1.3210-20, however, loss of upward momentum should prevent sharp move beyond 1.3240-50, bring another retreat later.
