GBP/USD – 1.2838
New strategy :
Stand aside
Position : –
Target : –
Stop : –
Although cable has finally resumed recent decline as the pair broke below support at 1.2832, loss of downward momentum should prevent sharp fall below previous support at 1.2812 and reckon 1.2770 would limit downside, price should stay above 1.2750 and bring rebound later.
In view of this, would not chase this fall here and would be prudent to stand aside for now. Above the upper Kumo (now at 1.2875) would suggest an intra-day low is formed and bring a stronger rebound to 1.2890 but only break of resistance at 1.2917-18 would signal a temporary low is formed, bring retracement of recent decline to 1.2933-40 (previous support) first.
