Trade Idea Wrap-up: GBP/USD – Buy at 1.3410

GBP/USD – 1.3472

Most recent candlesticks pattern   : N/A

Trend                                 : Near term up

Tenkan-Sen level                 : 1.3500

Kijun-Sen level                    : 1.3502

Ichimoku cloud top              : 1.3432

Ichimoku cloud bottom        : 1.3351

Original strategy :

Buy at 1.3440, Target: 1.3560, Stop: 1.3405

Position : –

Target :  –

Stop : –

New strategy  :

Buy at 1.3410, Target: 1.3540, Stop: 1.3375

Position : –

Target :  –

Stop : –

As cable has retreated after meeting resistance at 1.3550, suggesting consolidation below this level would be seen and pullback to 1.3435-40 is likely, however, reckon 1.3400-10 would limit downside and bring another rise later, above 1.3505-10 would bring retest of 1.3550 but break there is needed to confirm recent rise has resumed for headway to 1.3570-75 and later towards 1.3600. 

In view of this, would not chase this rise here and would be prudent to buy sterling on subsequent pullback as 1.3400-05 would limit downside and bring another rise. Below 1.3374 support would abort and signal top has been formed, bring further fall to 1.3340-45.