GBP/USD – 1.2700
Most recent candlesticks pattern : N/A
Trend : Near term down
Tenkan-Sen level : 1.2735
Kijun-Sen level : 1.2810
Ichimoku cloud top : 1.2944
Ichimoku cloud bottom : 1.2921
New strategy :
Sell at 1.2760, Target: 1.2630, Stop: 1.2795
Position : –
Target : –
Stop : –
Cable has tumbled on UK election result, the breach of indicated previous support at 1.2769, adding credence to our view that top has been formed at 1.3048 earlier and bearishness remains for the decline from there to bring retracement of early upmove to 1.2616 (previous resistance turned support), break there would extend weakness to 1.2575-80 but reckon near term oversold condition would limit downside to 1.2550, bring recovery later.
In view of this, would not chase this fall here and would be prudent to sell on recovery as 1.2750-60 should limit upside. Only above 1.2800-05 would defer and risk a stronger rebound to 1.2830-35 but price should falter below 1.2870-75 and bring another decline later.
