Candlesticks Intraday

Trade Idea Wrap-up: GBP/USD - Buy at 1.2710

Typography

GBP/USD - 1.2770


Most recent candlesticks pattern   : N/A

Trend                                 : Near term up


Tenkan-Sen level                 : 1.2796

Kijun-Sen level                    : 1.2802

Ichimoku cloud top              : 1.2815

Ichimoku cloud bottom        : 1.2725


Original strategy :

Buy at 1.2710, Target: 1.2850, Stop: 1.2675

Position : -

Target :  -

Stop : -


New strategy  :

Buy at 1.2710, Target: 1.2850, Stop: 1.2675

Position : -

Target :  -

Stop : -


Cable has remained confined within familiar range and further sideways trading is in store, however, downside should be limited to 1.2755-60 (38.2% Fibonacci retracement of 1.2515-1.2906) and reckon 1.2700-10 would hold, bring another rally, break of 1.2755069 would signal the pullback from 1.2906 has ended, bring retest of this level, break there would extend recent upmove to 1.2920-30 (2 times extension of 1.2365-1.2575 measuring from 1.2500), then 1.2950 but loss of near term upward momentum should prevent sharp move beyond 1.2990-00 (1.236 times projection of 1.2109-1.2616 measuring from 1.2365 and psychological resistance). 

In view of this, would not chase this rise here and would be prudent to buy cable on subsequent pullback as downside should be limited to 1.2710 (50% Fibonacci retracement of 1.2515-1.2906), bring another rise. Below 1.2700 would defer and signal top has been formed, risk correction to 1.2660-65 (61.8% Fibonacci retracement of 1.2515-1.2906) and price should stay well above 1.2608-16 (previous resistance now support).

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Author: Action Forex
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