Trade Idea Wrap-up: GBP/USD – Hold short entered at 1.3175

GBP/USD – 1.3106

Most recent candlesticks pattern   : N/A

Trend                                 : Near term down

Tenkan-Sen level                 : 1.3119

Kijun-Sen level                    : 1.3119

Ichimoku cloud top              : 1.3135

Ichimoku cloud bottom        : 1.3133

Original strategy :

Sold at 1.3175, Target: 1.3045, Stop: 1.3175

Position : – Short at 1.3175

Target :  – 1.3045

Stop : – 1.3175

New strategy  :

Hold short entered at 1.3175, Target: 1.3065, Stop: 1.3155

Position : – Short at 1.3175

Target :  – 1.3065

Stop : – 1.3155

Although the British pound has recovered after falling to 1.3085 and consolidation would be seen, reckon resistance at 1.3153 would cap upside and bring another decline later, below said support would add credence to our bearish view that the rebound from 1.3039 has ended at 1.3178, bring further fall to 1.3055-60, then retest of this support. Looking ahead, only a drop below 1.3027 low would confirm early downtrend has resumed for weakness to psychological support at 1.3000, then towards 1.2970-75.  

In view of this, we are holding on to our short position entered at 1.3175. Only above 1.3175-80 would risk gain to 1.3200, break there would defer and prolong choppy trading, risk a stronger rebound to 1.3235-40 first.