Trade Idea Wrap-up: GBP/USD – Hold short entered at 1.3440

GBP/USD – 1.3377

Most recent candlesticks pattern   : N/A

Trend                                 : Near term up

Tenkan-Sen level                 : 1.3394

Kijun-Sen level                    : 1.3410

Ichimoku cloud top              : 1.3455

Ichimoku cloud bottom        : 1.3439

Original strategy :

Sold at 1.3440, Target: 1.3340, Stop: 1.3465

Position : – Short at 1.3440

Target :  – 1.3340

Stop : – 1.3465

New strategy  :

Hold short entered at 1.3440, Target: 1.3340, Stop: 1.3455

Position : – Short at 1.3440

Target :  – 1.3340

Stop : – 1.3455

Cable met renewed selling interest at 1.3461 and has fallen again, adding credence to our bearish view that top has been formed at 1.3550 and downside bias remains for the erratic fall from there to bring retracement of recent rise to 1.3340-50 (61.8% Fibonacci retracement of 1.3221-1.3550) but near term oversold condition should prevent sharp fall below 1.3300 and reckon 1.3260-65 would hold, bring rebound later. 

In view of this, we are holding on to our short position entered at 1.3440. Only above said resistance at 1.3461 would defer and risk test of resistance at 1.3483 but break there is needed to signal an intra-day low is formed instead, bring another bounce to 1.3530-35 first.