Commerce Concept Wrap-up: GBP/USD - Purchase at 1.5000

GBP/USD – 1.5124

Most recent candlesticks pattern   : N/A

Trend                                 : Near term down

Tenkan-Sen level                 : 1.5117

Kijun-Sen level                    : 1.5091

Ichimoku cloud top              : 1.4995

Ichimoku cloud bottom        : 1.4985

Original strategy :

Buy at 1.4980, Target: 1.5080, Stop: 1.4945

Position : –

Target :  –

Stop : –

New strategy  :

Buy at 1.5000, Target: 1.5150, Stop: 1.4965

Position : –

Target :  –

Stop : –

Yesterday’s rally above previous resistance at 1.5126-36 signals a temporary low has been formed at 1.4895 earlier this week and consolidation with upside bias is seen for retracement of recent entire decline and gain to 1.5165-70 (61.8% Fibonacci retracement of 1.5336-1.4895) and possibly towards previous resistance at 1.5190 would be seen, however, near term overbought condition should limit upside to 1.5235-40 today, bring retreat later.

In view of this, would not chase this rise here and would be prudent to buy cable on subsequent pullback as 1.5000 should limit downside. Below the lower Kumo (now at 1.4985) would abort and signal the rebound from 1.4895 has ended instead, risk weakness to 1.4950 first.

Commerce Concept Wrap-up: GBP/USD - Purchase at 1.5000