Trade Idea : GBP/USD – Buy at 1.2350


GBP/USD – 1.2369

Most recent candlesticks pattern   : N/A

Trend                                 : Near term down

Tenkan-Sen level                 : 1.2378

Kijun-Sen level                    : 1.2411

Ichimoku cloud top              : 1.2477

Ichimoku cloud bottom        : 1.2434

New strategy  :

Buy at 1.2350, Target: 1.2450, Stop: 1.2315

Position : –

Target :  –

Stop : –

Although cable has dropped on dollar’s broad-based strength and weakness towards support at 1.2347 cannot be ruled out, as broad outlook remains consolidative, reckon downside would be limited and bring rebound later, above the Kijun-Sen (now at 1.2411) would bring recovery to 12440-50 but price should falter below resistance at 1.2471-79, bring another decline later.

In view of this, we are inclined to buy cable on dips. A firm break below said support at 1.23476 would signal early decline from 1.2706 has resumed and extend weakness towards 1.2300-10 but loss of near term downward momentum should limit downside to 1.2270-75 and bring rebound.

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