Trade Idea Wrap-up: GBP/USD - Buy at 1.2330

GBP/USD – 1.2433

Most recent candlesticks pattern   : N/A

Trend                                 : Near term up

Tenkan-Sen level                 : 1.2411

Kijun-Sen level                    : 1.2387

Ichimoku cloud top              : 1.2287

Ichimoku cloud bottom        : 1.2250

Original strategy :

Buy at 1.2330, Target: 1.2450, Stop: 1.2295

Position : –

Target :  –

Stop : –

New strategy  :

Buy at 1.2330, Target: 1.2450, Stop: 1.2295

Position : –

Target :  –

Stop : –

As the British pound has surged again after finding renewed buying interest at 1.2279 yesterday, adding credence to our view that the erratic rise from 1.2082 is still in progress and may extend gain towards 1.2500-10, however, near term overbought condition should prevent sharp move beyond 1.2540-50 and reckon 1.2575-80 would hold from here.

In view of this, would not chase this rise here and would be prudent to buy cable on pullback but as 1.2320-30 should limit downside. Only below said support at 1.2279 would abort and signal top is formed instead, risk correction to 1.2240-50 but support at 1.2206 should remain intact.

Trade Idea Wrap-up: GBP/USD - Buy at 1.2330