Trade Idea : GBP/USD – Buy at 1.3250

GBP/USD – 1.3316

Most recent candlesticks pattern   : N/A

Trend                                 : Near term up

Tenkan-Sen level                 : 1.3292

Kijun-Sen level                    : 1.3223

Ichimoku cloud top              : 1.3230

Ichimoku cloud bottom        : 1.3209

New strategy  :

Buy at 1.3250, Target: 1.3350, Stop: 1.3215

Position : –

Target :  –

Stop : –

As the British pound found renewed buying interest at 1.3121 yesterday and has rallied, suggesting the rise from 1.3027 low is still in progress, hence consolidation with upside bias is seen for this move to bring a stronger retracement of recent decline, hence gain to 1.3345-50 would be seen, however, near term overbought condition should limit upside to 1.3375-80 (61.8% Fibonacci retracement of 1.3596-1.3027) and 1.3400 should hold from here.

In view of this, would not chase this rise here and would be prudent to buy cable on pullback as 1.3245-50 should limit downside. Below the Kijun-Sen (now at 1.3223) would defer and suggest an intra-day top is formed, bring weakness to 1.3200, then towards 1.3175 but said support at 1.3121 should remain intact.