GBP/USD – 1.2857
Most recent candlesticks pattern : N/A
Trend : Near term down
Tenkan-Sen level : 1.2903
Kijun-Sen level : 1.2918
Ichimoku cloud top : 1.2988
Ichimoku cloud bottom : 1.2986
Original strategy :
Sell at 1.2920, Target: 1.2820, Stop: 1.2955
Position : –
Target : –
Stop : –
New strategy :
Sell at 1.2920, Target: 1.2820, Stop: 1.2955
Position : –
Target : –
Stop : –
As cable’s decline has gathered momentum after breaking below support at 1.2933-40, adding credence to our bearish view that the decline from 1.3269 top is still in progress for retracement of early upmove, hence downside bias remains for further weakness to 1.2825-30 (61.8% projection of 1.3269-1.2940 measuring from 1.3032), having said that, near term oversold condition should limit downside to 1.2800 and reckon 1.2770 would hold from here, bring rebound later.
In view of this, would not chase this fall here and would be prudent to sell sterling on recovery as said previous support at 1.2933 should turn into resistance and cap cable’s upside, bring another decline. Above 1.2950 would defer and risk a stronger rebound to 1.2990-00 before another decline.
