Trade Idea Wrap-up: GBP/USD – Hold short entered at 1.3500

GBP/USD – 1.3519

Most recent candlesticks pattern   : N/A

Trend                                 : Near term up

Tenkan-Sen level                 : 1.3479

Kijun-Sen level                    : 1.3479

Ichimoku cloud top              : 1.3501

Ichimoku cloud bottom        : 1.3462

Original strategy :

Sold at 1.3500, Target: 1.3400, Stop: 1.3535

Position : – Short at 1.3500

Target :  – 1.3400

Stop : – 1.3535

New strategy  :

Hold short entered at 1.3500, Target: 1.3400, Stop: 1.3535

Position : – Short at 1.3500

Target :  – 1.3400

Stop : – 1.3535

Although cable has rebounded after finding support at 1.3419 and further consolidation would be seen, reckon upside would be limited to 1.3530-35 and bring retreat later, below said support at 1.3419 would bring retracement of recent rise for weakness to 1.3400, however, reckon downside would be limited to 1.3380-85 (50% Fibonacci retracement of 1.3221-1.3550) and bring rebound to 1.3500 but upside should be limited to 1.3515-25, bring another corrective decline later. 

In view of this, we are holding on to our short position entered at 1.3500. Above 1.3535-40 would signal the retreat from 1.3550 has ended, bring retest of this level, then 1.3575-80 but reckon 1.3600-10 would hold. Below 1.3345-50 (61.8% Fibonacci retracement of 1.3221-1.3550) would abort and signal top has been formed at 1.3550, bring further fall towards 1.3300-10.