Trade Idea Wrap-up: GBP/USD – Target met and stand aside

GBP/USD – 1.3383

Most recent candlesticks pattern   : N/A

Trend                                 : Near term up

Tenkan-Sen level                 : 1.3372

Kijun-Sen level                    : 1.3372

Ichimoku cloud top              : 1.3449

Ichimoku cloud bottom        : 1.3404

Original strategy :

Sold at 1.3440, met target at 1.3340

Position : – Short at 1.3440

Target :  – 1.3340

Stop : –

New strategy  :

Stand aside

Position : –

Target :  –

Stop : –

Cable did resume recent fall from 1.3550 and our short position entered at 1.3440 met indicated downside target at 1.3340 as the pair fell to as low as 1.3320 (with 100 points profit), having said that, as sterling found good support at 1.3320 and has rebounded in NY morning, initial upside risk is seen for recovery to 1.3430-35 but break of resistance at 1.3461 is needed to confirm low is formed, bring further gain towards 1.3500.

As we have taken profit on our short position entered at 1.3440, would not chase this fall here and would be prudent to stand aside in the meantime. Below said support at 1.3320 would signal the fall from 1.3550 is still in progress and may extend further weakness to 1.3300 but reckon 1.3260-65 would hold, bring rebound later.