GBP/USD – 1.2272
Most recent candlesticks pattern : N/A
Trend : Near term down
Tenkan-Sen level : 1.2283
Kijun-Sen level : 1.2258
Ichimoku cloud top : 1.2315
Ichimoku cloud bottom : 1.2272
Original strategy :
Sell at 1.2350, Target: 1.2250, Stop: 1.2385
Position : –
Target : –
Stop : –
New strategy :
Buy at 1.2220, Target: 1.2340, Stop: 1.2185
Position : –
Target : –
Stop : –
Although cable dropped to as low as 1.2214 late last week, the subsequent rebound suggests consolidation above this level would be seen with mild upside bias for recovery to 1.2315-20 (38.2% Fibonacci retracement of 1.2479-1.2214), above there would extend gain to 1.2347 (50% Fibonacci retracement and previous support), however, reckon upside would be limited to 1.2375-80 (61.8% Fibonacci retracement of 1.2479-1.2214) and bring another decline later.
In view of this, we are looking to turn long on dips but one should take profit on such a rebound. Below said support at 1.2214 would extend recent decline from 1.2706 top to 1.2200, then towards 1.2170-75 but reckon 1.2150 would hold from here, risk from there is seen for another rebound.
