Weekly
   •   Last Candlesticks pattern: Long white candlestick
   •   Time of formation: 16 Jan 2017
   •   Trend bias: Down
Daily
   •   Last Candlesticks pattern: Long white candlestick
   •   Time of formation: 18 Apr 2017
   •   Trend bias: Near term up
GBP/USD – 1.3003
Although cable has rebounded after finding support at 1.2769 late last week and consolidation with initial upside bias is seen for recovery to 1.2970-80, reckon 1.3000 would limit upside and price should falter below recent high at 1.3048, bring another retreat later. Below 1.2830 would bring test of said support at 1.2769, break there would signal a temporary top has been formed, bring retracement of recent upmove to the upper Kumo (now at 1.2703) and possibly towards 1.2650, having said that, reckon downside would be limited and previous resistance at 1.2616 would turn into support and contain downside, bring rebound later.
On the upside, whilst initial recovery to 1.2975-85 cannot be ruled out, reckon resistance at 1.3015 would hold from here, bring another retreat later. Only a daily close above said resistance at 1.3015 would signal retreat from 1.3048 has ended, bring retest of this level later. Once this recent high at 1.3048 is penetrated, this would signal the upmove from 1.1986 low (Jan low) has resumed for retracement of early downtrend, hence further gain to 1.3050-60, then 1.3100 would be seen, however, loss of near term upward momentum should prevent sharp move beyond 1.3140-50 (38.2% Fibonacci retracement of 1.5018-1.1986) and reckon 1.3200 would hold.


Recommendation: Stand aside for this week.Â
Â



On the weekly chart, although cable has rebounded after finding support at 1.2769, break of 1.3015 resistance is needed to signal pullback from 1.3048 has ended, bring retest of this level, once this recent high is penetrated, this would signal the erratic upmove from 1.1986 low (2017 low) has resumed, bring retracement of early decline to 1.3090-00, then towards 1.3140-50 (38.2% Fibonacci retracement of 1.5018-1.1986) but price should falter well below 1.3200-10, risk from there is seen for a retreat to take place later.Â


On the downside, expect pullback to be limited to 1.2830-40 and bring another rebound. Below 1.2830 would bring test of 1.2769 support, break there would bring correction to the Tenkan-Sen (now at 1.2707), however, downside should be limited to 1.2665-70 and bring another rise. Only below previous resistance at 1.2616 would abort and signal top is formed instead, bring weakness to 1.2550-60, however, still reckon downside would be limited and previous support at 1.2515 should remain intact.

