Commerce Concept Wrap-up: GBP/USD - Promote at 1.4685

GBP/USD – 1.4565

Most recent candlesticks pattern   : N/A

Trend                                 : Down

Tenkan-Sen level                 : 1.4591

Kijun-Sen level                    : 1.4598

Ichimoku cloud top              : 1.4615

Ichimoku cloud bottom        : 1.4592

Original strategy :

Sell at 1.4685, Target: 1.4570, Stop: 1.4720

Position : –

Target :  –

Stop : –

New strategy  :

Sell at 1.4685, Target: 1.4570, Stop: 1.4720

Position : –

Target :  – 

Stop : –

Although the British pound has retreated after meeting resistance at 1.4645, break of yesterday’s low at 1.4533 is needed to signal recent decline has once again resumed and extend weakness to 1.4500 but loss of momentum should prevent sharp fall below 1.4470 and reckon 1.4450 would hold from here. If said support at 1.4533 continues to hold, then further consolidation would take place and another corrective bounce to 1.4650-55 (38.2% Fibonacci retracement of 1.4849-1.4533) is likely, however, reckon 1.4682 resistance would limit upside and bring another decline later. 

In view of this, would not chase this fall here and would be prudent to sell cable on subsequent recovery as 1.4682-85 should limit upside. Above 1.4725-30 (61.8% Fibonacci retracement of 1.4849-1.4533) would abort and signal a temporary low has been formed, bring rebound to 1.4760-70.

Commerce Concept Wrap-up: GBP/USD - Promote at 1.4685