Trade Idea Wrap-up: GBP/USD – Buy at 1.3385

GBP/USD – 1.3446

Most recent candlesticks pattern   : N/A

Trend                                 : Near term down

Tenkan-Sen level                 : 1.3399

Kijun-Sen level                    : 1.3399

Ichimoku cloud top              : 1.3451

Ichimoku cloud bottom        : 1.3408

Original strategy :

Sell at 1.3500, Target: 1.3380, Stop: 1.3535

Position : –

Target :  –

Stop : –

New strategy  :

Buy at 1.3385, Target: 1.3485, Stop: 1.3350

Position : –

Target :  –

Stop : –

As cable found good support at 1.3343 and has staged a strong rebound, suggesting low is possibly formed there and consolidation with mild upside bias is seen for test of 1.3465-70 (50% Fibonacci retracement of 1.3596-1.3345), however, reckon resistance at 1.3514 would limit upside and price should falter well below resistance at 1.3571, bring another decline later.

In view of this, we are looking to turn long on dips as 1.3380-85 should limit downside. Only below said support at 1.3343 would abort and signal the selloff from 1.3658 top has resumed and extend weakness to previous resistance at 1.3329, then towards 1.3300.