Candlesticks Intraday

Trade Idea : GBP/USD - Stand aside


GBP/USD - 1.2778

Most recent candlesticks pattern   : N/A

Trend                                 : Near term down

Tenkan-Sen level                 : 1.2772

Kijun-Sen level                    : 1.2782

Ichimoku cloud top              : 1.2756

Ichimoku cloud bottom        : 1.2754

New strategy  :

Stand aside

Position : -

Target :  -

Stop : -

The British pound has traded narrowly after faltering below resistance at 1.2818, retaining our view that further sideways trading would be seen and cable needs to penetrate said resistance at 1.2818 to signal the erratic rise from 1.2635 low is still in progress and may extend gain to 1.2845-50 (61.8% Fibonacci retracement of 1.2978-1.2635) but upside should be limited to 1.2870-80 and price should falter below 1.2900, bring another decline later. 

In view of this, would not chase this rise here and would be prudent to sell cable on further subsequent recovery, Below 1.2720-25 would suggest an intra-day top is formed, bring test of indicated support at 1.2690 but break there is needed to revive bearishness and signal the rebound from 1.2635 has ended, bring further fall to 1.2650, then towards said support at 1.2635.