Trade Idea Wrap-up: GBP/USD – Sell at 1.2350


GBP/USD – 1.2286

Most recent candlesticks pattern   : N/A

Trend                                 : Near term down

Tenkan-Sen level                 : 1.2284

Kijun-Sen level                    : 1.2294

Ichimoku cloud top              : 1.2384

Ichimoku cloud bottom        : 1.2359

Original strategy :

Sell at 1.2350, Target: 1.2250, Stop: 1.2385

Position : –

Target :  –

Stop : –

New strategy  :

Sell at 1.2350, Target: 1.2250, Stop: 1.2385

Position : –

Target :  –

Stop : –

As cable has remained under pressure after yesterday’s breach of previous support at 1.2347 (now resistance), suggesting the decline from 1.2706 top is still in progress and may extend further weakness to previous support at 1.2251, however, near term oversold condition should prevent sharp fall below 1.2200-10 and reckon 1.2170-75 would hold from here, risk from there is seen for a rebound later.

In view of this, would not chase this fall here and would be prudent to sell cable on subsequent rebound as 1.2347 (previous support now resistance) should limit upside and price should falter well below 1.2383 (another previous support), cable shall head south again from there.

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