GBP/USD – 1.3185
New strategy :
Stand aside
Position : –
Target : –
Stop : –
Cable has edged higher again and near term upside risk remains for the corrective rise from 1.3027 (last week’s low) to bring retracement of recent decline, hence gain to 1.3210-15 cannot be ruled out, however, reckon upside would be limited to 1.3240-50 (50% Fibonacci retracement of 1.3455-1.3027 and previous resistance), however, further sharp move beyond there should not be repeated and price should falter well below 1.3291-92 (61.8% Fibonacci retracement and previous resistance).
In view of this, would not chase this rise here and would be prudent to stand aside for now. Below 1.3150 would bring test of support at 1.3126, break there would signal an intra-day top is formed but break of 1.3100 is needed to signal the rebound from 1.3027 has ended, then fall to 1.3070-75 would follow.
