Trade Idea Wrap-up: GBP/USD – Sell at 1.3260

GBP/USD – 1.3191

Most recent candlesticks pattern   : N/A

Trend                                 : Near term down

Tenkan-Sen level                 : 1.3148

Kijun-Sen level                    : 1.3149

Ichimoku cloud top              : 1.3201

Ichimoku cloud bottom        : 1.3179

Original strategy :

Sell at 1.3220, Target: 1.3100, Stop: 1.3255

Position : –

Target :  –

Stop : –

New strategy  :

Sell at 1.3260, Target: 1.3120, Stop: 1.3295

Position : –

Target :  –

Stop : –

Although cable fell again to 1.3088, lack of follow through selling on break of previous support at 1.3121 suggests consolidation would be seen and another bounce to 1.3175-80 cannot be ruled out, however, reckon resistance at 1.3229 would limit upside and bring another decline later, below said support at 1.3088 would extend the fall from 1.3338 to 1.3050 but recent low at 1.3027 should remain intact due to oversold condition.

In view of this, wee are looking to sell cable on subsequent recovery as resistance at 1.3229 should limit upside and bring another decline later. Above 1.3250-55 would defer and risk test of indicated resistance at 1.3287 but only a firm break above this level would abort and signal low is formed instead, bring rebound to 1.3300 and possibly test of resistance at 1.3312.