Trade Idea Wrap-up: GBP/USD – Buy at 1.2885

GBP/USD – 1.2959

Most recent candlesticks pattern   : N/A

Trend                                 : Near term up

Tenkan-Sen level                 : 1.2944

Kijun-Sen level                    : 1.2931

Ichimoku cloud top              : 1.2890

Ichimoku cloud bottom        : 1.2877

Original strategy :

Buy at 1.2885, Target: 1.2985, Stop: 1.2850

Position : –

Target :  –

Stop : –

New strategy  :

Buy at 1.2885, Target: 1.2985, Stop: 1.2850

Position : –

Target :  –

Stop : –

As cable has staged a strong rebound after finding support at 1.2831 yesterday, signaling the pullback from 1.2965 has ended at 1.2831 and retest of 1.2965 is likely, once this level is penetrated, this would confirm recent upmove has resumed and extend further gain to 1.2990-00 (1.236 times projection of 1.2109-1.2616 measuring from 1.2365 and psychological resistance), then towards 1.3040-50 which is likely to hold from here. 

In view of this, would not chase this rise here and would be prudent to buy cable on pullback as 1.2880-85 should limit downside and bring another rise later. Only break of said support at 1.0831 would abort and signal a temporary top has been formed, bring retracement of recent upmove to 1.2790-95 (38.2% Fibonacci retracement of 1.2515-1.2965) but support at 1.2740-50 (50% Fibonacci retracement) should hold.