GBP/USD – 1.3119
Most recent candlesticks pattern : N/A
Trend : Near term down
Tenkan-Sen level : 1.3146
Kijun-Sen level : 1.3169
Ichimoku cloud top : 1.3135
Ichimoku cloud bottom : 1.3130
Original strategy :
Bought at 1.3170, stopped at 1.3135
Position : – Long at 1.3170
Target : –
Stop : – 1.3135
New strategy :
Stand aside
Position : –
Target : –
Stop : –
Despite rising briefly to 1.3230 on Friday, lack of follow through buying and the subsequent retreat suggest further choppy trading would be seen and weakness towards support at 1.3085 cannot be ruled out, however, break there is needed to revive bearishness and signal the rebound from 1.3039 has ended, bring weakness to 1.3050-55, then towards strong support area at 1.3027-39.
In view of this, would not chase this fall here and would be prudent to stand aside in the meantime. Above the Kijun-Sen (now at 1.3169) would prolong choppy trading and bring recovery to 1.3200 but said resistance at 1.3230 would hold from here, bring further consolidation. Above said resistance at 1.3230 would extend the erratic rise from 1.3039 to 1.3250, then 1.3275-80.
