Trade Idea Wrap-up: GBP/USD – Buy at 1.2480

GBP/USD – 1.2521

Most recent candlesticks pattern   : N/A

Trend                                 : Near term down

Tenkan-Sen level                 : 1.2537

Kijun-Sen level                    : 1.2529

Ichimoku cloud top              : 1.2486

Ichimoku cloud bottom        : 1.2455

Original strategy :

Buy at 1.2485, Target: 1.2585, Stop: 1.2450

Position : –

Target :  –

Stop : –

New strategy  :

Buy at 1.2480, Target: 1.2580, Stop: 1.2445

Position : –

Target :  –

Stop : –

As cable has retreated after rising to 1.2575, suggesting consolidation below this level would be seen and pullback to 1.2500 is likely, however, reckon support at 1.2480-81 would limit downside and bring another rise later, above said resistance at 1.2575 would add credence to our view that low has been formed at 1.2365 on Monday and extend the rise from there to 1.2585-90 but break of previous resistance at 1.2616 is needed to retain bullishness and extend subsequent upmove to 1.2650-60. 

In view of this, would not chase this rise here and would be prudent to buy cable on pullback as 1.2481 support should limit downside and bring another upmove later. Below the lower Kumo (now at 1.2455) would defer and suggest top is formed, risk test of 1.2433 (previous resistance) first.