GBP/USD – 1.2873
New strategy :
Stand aside
Position : –
Target : –
Stop : –
Despite rebounding to 1.2916 yesterday, as cable has retreated again after faltering below indicated resistance at 1.2921, retaining our view that further consolidation would be seen and weakness to 1.2830 support cannot be ruled out, however, only break there would signal the rebound from 1.2769 has ended, bring further fall to 1.2800 but said support at 1.2769 should remain intact.
On the upside, above 1.2905 would bring another test of 1.2921-26 (resistance and previous support), however, break there is needed to signal low has been formed at 1.2769, bring further gain to 1.2940-45 (61.8% Fibonacci retracement of 1.3048-1.2769) and later towards 1.2970 but overbought condition should cap upside below 1.3000. As near term outlook is mixed, would be prudent to stand aside for now.
