HomeTrade IdeasCandlesticks IntradayTrade Idea : GBP/USD - Hold short entered at 1.3175

Trade Idea : GBP/USD – Hold short entered at 1.3175

GBP/USD – 1.3154

Most recent candlesticks pattern   : N/A

Trend                                 : Near term down

Tenkan-Sen level                 : 1.3164

Kijun-Sen level                    : 1.3123

Ichimoku cloud top              : 1.3164

Ichimoku cloud bottom        : 1.3078

Original strategy :

Sold at 1.3175, Target: 1.3045, Stop: 1.3210

Position : – Short at 1.3175

Target :  – 1.3045

Stop : – 1.3210

New strategy  :

Hold short entered at 1.3175, Target: 1.3045, Stop: 1.3210

Position : – Short at 1.3175

Target :  – 1.3045

Stop : – 1.3210

Although cable staged another strong rebound since yesterday, as this move from 1.3039 is viewed as retracement of last week’s selloff, reckon upside would be limited and mild downside bias remains for test of the Kijun-Sen (now at 1.3123), break there would suggest an intra-day top is formed, bring weakness to 1.3095-00 but below 1.3065-70 is needed to signal the rebound from 1.3039 has ended and bring retest of recent low at 1.3027. Looking ahead, only a drop below this level would confirm early downtrend has resumed for weakness to psychological support at 1.3000, then towards 1.2970-75.  

In view of this, we are holding on to our short position entered at 1.3175. Above 1.3175-80 would risk gain to 1.3200, break there would defer and prolong choppy trading, risk a stronger rebound to 1.3235-40 first.

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