HomeTrade IdeasCandlesticks IntradayTrade Idea Wrap-up: GBP/USD - Hold short entered at 1.2695

Trade Idea Wrap-up: GBP/USD – Hold short entered at 1.2695

GBP/USD – 1.2667

Most recent candlesticks pattern   : N/A

Trend                                 : Near term down

Tenkan-Sen level                 : 1.2622

Kijun-Sen level                    : 1.2681

Ichimoku cloud top              : 1.2769

Ichimoku cloud bottom        : 1.2752

Original strategy :

Sold at 1.2695, Target: 1.2595, Stop: 1.2710

Position : –  Short at 1.2695

Target :  – 1.2595

Stop : – 1.2710

New strategy  :

Hold short entered at 1.2695, Target: 1.2595, Stop: 1.2710

Position : – Short at 1.2695

Target :  – 1.2595

Stop : – 1.2710

Although cable has staged a strong rebound after intra-day brief fall to 1.2589, as long as 1.2710 holds, mild downside  bias remains for another decline, below 1.2635-40 would bring another fall towards said support but break there is needed to retain bearishness and signal recent decline has resumed for weakness towards 1.2550, however, oversold condition should limit downside to 1.2520-25. 

In view of this, we are holding on to our short position entered at 1.2695. Only above 1.2720-25 would abort and suggest low has been formed instead, bring a stronger rebound to 1.2755-60 and possibly 1.2780 but price should falter below indicated strong resistance at 1.2818.

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