GBP/USD – 1.2804
Original strategy :
Buy at 1.2760, Target: 1.2860, Stop: 1.2725
Position : –
Target : –
Stop : –
New strategy :
Buy at 1.2755, Target: 1.2855, Stop: 1.2720
Position : –
Target : –
Stop : –
As cable has retreated again after meeting resistance at 1.2837, retaining our view that near term downside risk remains for recent selloff to extend one more fall, however, loss of downward momentum should prevent sharp fall below 1.2750-55, risk from there has increased for a rebound to take place soon, above 1.2845-50 would suggest a temporary low is possibly formed, bring a stronger recovery to 1.2870, break there would add credence to this view, then retracement of recent decline would commence for further gain to 1.2900.
In view of this, we are inclined to turn long on next decline. Below 1.2740-50 would risk weakness to 1.2720-25, however, still reckon downside would be limited to 1.2700-05 (100% projection of 1.3269-1.2940 measuring from 1.3032) and risk from there remains for another rebound to take place later.
