Mon, May 16, 2022 @ 19:17 GMT
HomeTrade IdeasCandlesticks IntradayTrade Idea : GBP/USD - Stand aside

Trade Idea : GBP/USD – Stand aside

GBP/USD – 1.2225

Most recent candlesticks pattern   : N/A

Trend                                 : Near term down

Tenkan-Sen level                 : 1.2238

Kijun-Sen level                    : 1.2258

Ichimoku cloud top              : 1.2274

Ichimoku cloud bottom        : 1.2262

Original strategy :

Buy at 1.2220, Target: 1.2340, Stop: 1.2185

Position : –

Target :  –

Stop : –

New strategy  :

Stand aside

Position : –

Target :  –

Stop : –

As cable has remained under pressure after meeting renewed selling interest at 1.2301, suggesting near term downside risk remains for retest of 1.2214 (last week’s low), however, break there is needed to confirm recent decline has resumed and extend weakness to 1.2200, then towards 1.2170-75 but reckon 1.2150 would hold from here due to loss of downward momentum, bring another rebound later. 

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 1.2258) would bring recovery to 1.2275-80, break there would prolong consolidation and bring another bounce to said resistance at 1.2301 and then 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) but price should falter well below 1.2375-80 (61.8% Fibonacci retracement of 1.2479-1.2214) and bring another decline. 

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