Trade Idea Wrap-up: GBP/USD – Sell at 1.3285

GBP/USD – 1.3205

Most recent candlesticks pattern   : N/A

Trend                                 : Near term up

Tenkan-Sen level                 : 1.3172

Kijun-Sen level                    : 1.3181

Ichimoku cloud top              : 1.3224

Ichimoku cloud bottom        : 1.3177

Original strategy :

Sell at 1.3265, Target: 1.3145, Stop: 1.3300

Position : –

Target :  –

Stop : –

New strategy  :

Sell at 1.3285, Target: 1.3165, Stop: 1.3320

Position : –

Target :  –

Stop : –

Although cable fell briefly to 1.3133 in London morning, lack of follow through selling and current rebound suggest consolidation would be seen and recovery to 1.3220-25 cannot be ruled out, however, reckon upside would be limited to 1.3255-65 and resistance at 1.3287 should hold, bring another decline later, below said support at 1.3133 would extend the fall from 1.3338 to support at 1.3121, however, break there 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 further subsequent recovery as resistance at 1.3287 should cap upside, bring another decline later. Only a firm break above said resistance at 1.3287 would abort and signal low is formed instead, bring rebound to 1.3300 and possibly test of resistance at 1.3312.