Commerce Concept Wrap-up: GBP/USD - Purchase at 1.5020

GBP/USD – 1.5069

Most recent candlesticks pattern   : N/A

Trend                                 : Near term down

Tenkan-Sen level                 : 1.5079

Kijun-Sen level                    : 1.5086

Ichimoku cloud top              : 1.5104

Ichimoku cloud bottom        : 1.5027

Original strategy :

Buy at 1.5020, Target: 1.5150, Stop: 1.4985

Position : –

Target :  –

Stop : –

New strategy  :

Buy at 1.5020, Target: 1.5150, Stop: 1.4985

Position : –

Target :  –

Stop : –

As the British pound has retreated after surging from 1.4895 to 1.5159, retaining our view that consolidation below this level would be seen and pullback to 1.5050 and possibly 1.5027 (50% Fibonacci retracement of 1.4895-1.5159 as well as current level of the lower Kumo) cannot be ruled out, however, as a temporary low has been formed at 1.4895 last week, reckon downside would be limited and bring another rebound later, above said resistance at 1.5159 would extend the rise from 1.4895 low to 1.5165-70 (61.8% Fibonacci retracement of 1.5336-1.4895) and then towards previous resistance at 1.5190.

In view of this, would not chase this rise here and would be prudent to buy cable on subsequent pullback as 1.5020-30 should limit downside. Below 1.4995-00 (61.8% Fibonacci retracement of 1.4895-1.5159) would defer and suggest first leg of rise from 1.4895 has ended and risk weakness to 1.4970 but 1.4950 would hold, bring another rebound later.

Commerce Concept Wrap-up: GBP/USD - Purchase at 1.5020