GBP/USD – 1.3445
New strategy :
Stand aside
Position : –
Target : –
Stop : –
As cable has fallen again after intra-day initial brief bounce to 1.3514, near term downside risk remains for the erratic fall from 1.3658 top to bring retracement of recent rise, hence weakness to 1.3400-05 (50% Fibonacci retracement of 1.3153-1.3658) and possibly 1.3370–75 would be seen, however, near term oversold condition should limit downside to 1.3345-50 (61.8% Fibonacci retracement), bring rebound later.
In view of this, would not chase this fall here and would be prudent to stand aside in the meantime. Above 1.3475-80 would bring another bounce to 1.3514 but break there is needed to signal an intra-day low is formed, bring further gain to 1.3535-40 and later towards resistance at 1.3571 which is likely to hold from here.
