GBP/USD – 1.2883
Most recent candlesticks pattern : N/A
Trend : Near term up
Tenkan-Sen level : 1.2897
Kijun-Sen level : 1.2938
Ichimoku cloud top : 1.2989
Ichimoku cloud bottom : 1.2971
Original strategy :
Bought at 1.2960, stopped at 1.2925
Position : – Long at 1.2960
Target : –
Stop : – 1.2925
New strategy :
Stand aside
Position : –
Target : –
Stop : –
Sterling ran into heavy selling pressure at 1.3015 yesterday and has dropped sharply, price just broke below 1.2866 support earlier today, suggesting top has indeed been formed at 1.3048 earlier and downside bias is seen for this the erratic decline from there to extend weakness to previous support at 1.2844, then 1.2831, however, near term oversold condition should prevent sharp fall below 1.2800 and reckon 1.2770-75 would hold from here.
In view of this, would not chase this fall here and would be prudent to stand aside for now. Above previous support at 1.2926 (now resistance) would defer and suggest an intra-day low is formed instead, bring a stronger rebound to 1.2950 but upside should be limited to 1.2990-00.
