Trade Idea Wrap-up: GBP/USD – Target met and buy at 1.2860

GBP/USD – 1.2926

Most recent candlesticks pattern   : N/A

Trend                                 : Near term up

Tenkan-Sen level                 : 1.2883

Kijun-Sen level                    : 1.2865

Ichimoku cloud top              : 1.2747

Ichimoku cloud bottom        : 1.2743

Original strategy :

Bought at 1.2845, met target at 1.2945

Position : –  Long at 1.2845

Target :  – 1.2945

Stop : –

New strategy  :

Buy at 1.2860, Target: 1.2970, Stop: 1.2825

Position : –

Target :  –

Stop : –

As cable did rally after breaking resistance at 1.2861 (now support) on active cross-buying in sterling, adding credence to our bullish view that recent upmove from 1.2589 low is still in progress and may extend further gain to 1.2980-85 (1.618 times projection of 1.2589-1.2760 measuring from 1.2706), then towards psychological resistance at 1.3000, however, reckon upside would be limited to 1.3025-30 and price should falter below 1.3050 today. 

In view of this, we are looking to buy cable again on pullback as previous resistance at 1.2861 should limit downside. Below 1.2830-35 would defer and suggest an intra-day top is formed instead, risk weakness towards support at 1.2794 but 1.2760 (previous resistance turned support) should remain intact.