Trade Idea Wrap-up: GBP/USD - Buy at 1.2420

GBP/USD – 1.2545

Most recent candlesticks pattern   : N/A

Trend                                 : Near term up

Tenkan-Sen level                 : 1.2499

Kijun-Sen level                    : 1.2483

Ichimoku cloud top              : 1.2398

Ichimoku cloud bottom        : 1.2350

Original strategy :

Buy at 1.2400, Target: 1.2540, Stop: 1.2365

Position : –

Target :  –

Stop : –

New strategy  :

Buy at 1.2450, Target: 1.2570, Stop: 1.2415

Position : –

Target :  –

Stop : –

As cable has surged again after brief pullback, adding credence to our view that recent erratic rise from 1.1995 is still in progress and may extend gain to 1.2575-80, however, near term overbought condition should prevent sharp move beyond 1.2600-10 and reckon 1.2650-60 would hold from here, risk from there has increased for a retreat later.

In view of this, would not chase this rise here and would be prudent to buy cable on pullback but at a higher level as 1.2440-50 should limit upside. Only below the upper Kumo (now at 1.2398) would defer and suggest top is possibly formed, bring correction towards previous resistance at 1.2355 (now support) which is likely to limit downside.

 

Trade Idea Wrap-up: GBP/USD - Buy at 1.2420