Trade Idea Wrap-up: GBP/USD – Sell at 1.3030

GBP/USD – 1.2979

Most recent candlesticks pattern   : N/A

Trend                                 : Near term up

Tenkan-Sen level                 : 1.2982

Kijun-Sen level                    : 1.2992

Ichimoku cloud top              : 1.3066

Ichimoku cloud bottom        : 1.3033

Original strategy :

Sell at 1.3010, Target: 1.2915, Stop: 1.3045

Position : – 

Target :  –

Stop : –

New strategy  :

Sell at 1.3030, Target: 1.2930, Stop: 1.3065

Position : –

Target :  –

Stop : –

Cable has dropped after breaking support at 1.3005, suggesting top has been formed at 1.3126, hence consolidation with mild downside bias is seen for weakness to 1.3930-32 (61.8% Fibonacci retracement of 1.2812-1.3126), then test of previous support at 1.2912, however, break of latter level is needed to retain bearishness and extend the fall from 1.3126 top to 1.2880-85 first. 

In view of this, we are looking to sell cable on recovery as the lower Kumo (now at 1.3033) should limit upside. Only break of resistance at 1.3062 would abort and signal an intra-day low is formed instead, bring a stronger rebound towards 1.3090-00 but resistance at 1.3126 should remain intact.