GBP/USD – 1.3057
Most recent candlesticks pattern : N/A
Trend : Near term down
Tenkan-Sen level : 1.3050
Kijun-Sen level : 1.3095
Ichimoku cloud top : 1.3191
Ichimoku cloud bottom : 1.3164
Original strategy :
Sell at 1.3110, Target: 1.3010, Stop: 1.3145
Position : –
Target : –
Stop : –
New strategy :
Sell at 1.3110, Target: 1.3010, Stop: 1.3145
Position : –
Target : –
Stop : –
As cable has recovered after Friday’s selloff to 1.3024, suggesting minor consolidation would be seen and recovery to the Kijun-Sen (now at 1.3095) cannot be ruled out, however, reckon previous support at 1.3112 would turn into resistance and limit upside, bring another decline later, below said support at 1.3024 would signal the fall from 1.3269 top is still in progress and may extend weakness to 1.3005-10 (100% projection of 1.3269-1.3112 measuring from 1.3165) but a break below support at 1.2999 is needed to retain bearishness, then decline to 1.2986 (61.8% Fibonacci retracement of 1.2812-1.3269) and possibly 1.2955-60 would follow.
In view of this, we are looking to sell cable on recovery as previous support at 1.3112 should limit upside. Only break of 1.3165 is needed to signal low is formed instead, bring a stronger rebound to 1.3200 but upside should be limited to 1.3240-50 and price should falter below said resistance at 1.3269.
