Trade Idea Wrap-up: GBP/USD – Buy at 1.2970

GBP/USD – 1.3021

Most recent candlesticks pattern   : N/A

Trend                                 : Near term up

Tenkan-Sen level                 : 1.2971

Kijun-Sen level                    : 1.2971

Ichimoku cloud top              : 1.2954

Ichimoku cloud bottom        : 1.2924

New strategy  :

Buy at 1.2970, Target: 1.3070, Stop: 1.2935

Position : –

Target :  –

Stop : –

Current rally above previous resistance at 1.2996 confirms recent rise from 1.2774 has resumed and mild upside bias remains for this move to extend further gain to previous resistance at 1.3032, break there would encourage for headway to 1.3055-60 (100% projection of 1.2774-1.2979 measuring from 1.2852), then towards 1.3080 (61.8% Fibonacci retracement of 1.3269-1.2774) but near term overbought condition would prevent sharp move beyond 1.3100.

In view of this, would not chase this rise here and would be prudent to buy cable on pullback as the Kijun-Sen (now at 1.2971) should limit downside and bring another rise. Below the upper Kumo (now at 1.2954) would defer and risk weakness to the lower Kumo (now at 1.2924) but only break of support at 1.2905-09 would signal top is formed.