GBP/USD – 1.2396
New strategy :
Sell at 1.2450, Target: 1.2350, Stop: 1.2485
Position : –
Target : –
Stop : –
As the British pound has dropped again and broke below indicated feel at 1.2400, adding credence to our view that rebound from 1.2377 has ended at 1.2559 and reset of this level would be seen, however, break there is needed to confirm early fall from 1.2616 has resumed for weakness to 1.2350, then towards 1.2325-30 but near term oversold condition should limit downside today and reckon 1.2300 would hold from here.
In view of this, would not chase this fall here and would be prudent to sell cable on recovery as 1.2450-60 should limit upside. Above 1.2480 would defer and suggest low is formed instead, risk test of resistance at 1.2506 first, break there would confirm, then a stronger rebound to 1.2525-30 would follow.