Trade Idea Wrap-up: GBP/USD – Sell at 1.3225

GBP/USD – 1.3173

Most recent candlesticks pattern   : N/A

Trend                                 : Near term up

Tenkan-Sen level                 : 1.3221

Kijun-Sen level                    : 1.3223

Ichimoku cloud top              : 1.3286

Ichimoku cloud bottom        : 1.3230

Original strategy :

Sell at 1.3225, Target: 1.3125, Stop: 1.3260

Position : –

Target :  –

Stop : –

New strategy  :

Sell at 1.3225, Target: 1.3125, Stop: 1.3260

Position : –

Target :  –

Stop : –

The British pound met renewed selling interest at 1.3287 and has dropped again today, signaling top has been formed at 1.3338 late last week and consolidation with downside bias is seen for this move to extend further weakness to 1.3150, then towards support at 1.3121, however, break of latter level is needed to retain bearishness and bring further subsequent decline to 1.3090-00.

In view of this, wee are looking to sell cable on recovery as the lower Kumo (now at 1.3230) should limit upside and bring another decline later. Above 1.3250-60 would risk another test of said intra-day resistance at 1.3287 but only break there would signal an intra-day low is formed instead, bring rebound to 1.3300 and possibly test of resistance at 1.3312.