GBP/USD – 1.3458
Most recent candlesticks pattern : N/A
Trend : Near term up
Tenkan-Sen level : 1.3445
Kijun-Sen level : 1.3423
Ichimoku cloud top : 1.3332
Ichimoku cloud bottom : 1.3305
New strategy :
Buy at 1.3385, Target: 1.3485, Stop: 1.3350
Position : –
Target : –
Stop : –
As cable has maintained a firm undertone after recent rally above previous resistance at 1.3383 (now support), adding credence to our bullish view that the erratic rise from 1.3027 low is still in progress, hence upside bias remains for this move to extend further gain to 1.3480-85, however, overbought condition should prevent sharp move beyond 1.3500-10 and price should falter below 1.2475-80, bring retreat later.
In view of this, would not chase this rise here and would be prudent to buy sterling on subsequent pullback as 1.3383 (previous resistance turned support) should limit downside and bring another rise. Below 1.3355-60 would suggest top is formed instead, bring weakness to 1.3330, then towards 1.3300 but reckon downside would be limited to 1.3260-65.
