Trade Idea Update: GBP/USD – Sell at 1.3500

GBP/USD – 1.3413

Original strategy :

Sell at 1.3500, Target: 1.3380, Stop: 1.3535

Position : –

Target :  –

Stop : –

New strategy  :

Sell at 1.3500, Target: 1.3380, Stop: 1.3535

Position : –

Target :  –

Stop : –

As cable has recovered after intra-day brief fall to 1.3349 in London morning, suggesting consolidation above this level would be seen and recovery to 1.3435-40 is likely, however, reckon upside would be limited to 1.3470 and renewed selling interest should emerge around 1.3500-10, bring another decline later. A break of said support at 1.3349 would signal recent decline is still in progress and may extend weakness to previous resistance at 1.3329, then towards 1.3300. 

In view of this, would not chase this fall here and would be prudent to sell cable on further subsequent recovery as 1.3500 should hold. Above resistance at 1.3514 would defer and risk a stronger rebound to 1.3535-40 but resistance at 1.3571 should remain intact.