GBP/USD – 1.3158
Original strategy :
Sold at 1.3170, Target: 1.3070, Stop: 1.3205
Position : – Short at 1.3170
Target :Â – 1.3070
Stop : – 1.3205
New strategy :
Hold short entered at 1.3170, Target: 1.3070, Stop: 1.3195
Position : – Short at 1.3170
Target :Â – 1.3070
Stop : – 1.3195
Although cable surged again today and marginal gain cannot be ruled out, reckon 1.3190-95 (61.8% Fibonacci retracement of 1.3292-1.3027 as well as 38.2% Fibonacci retracement of 1.3455-1.3027) would cap upside and bring retreat later, below 1.3100 would suggest an intra-day top is formed, bring test of 1.3065-75, break there would suggest the rebound from 1.3027 has ended, bring retest of this level, break there would extend recent decline to psychological support at 1.3000 next.
In view of this, we are holding on to our short position entered at 1.3170. Above 1.3190-95 would risk test of previous support at 1.3222-29 (now resistance), break there would abort and signal low has been formed at 1.3027 instead, bring further gain to 1.3250 but price should falter below resistance at 1.3292.
