Trade Idea Wrap-up: GBP/USD - Sell at 1.2400

GBP/USD – 1.2320

Most recent candlesticks pattern   : N/A

Trend                                 : Near term down

Tenkan-Sen level                 : 1.2372

Kijun-Sen level                    : 1.2387

Ichimoku cloud top              : 1.2458

Ichimoku cloud bottom        : 1.2448

Original strategy :

Sell at 1.2400, Target: 1.2280, Stop: 1.2435

Position : –

Target :  –

Stop : –

New strategy  :

Sell at 1.2400, Target: 1.2280, Stop: 1.2435

Position : –

Target :  –

Stop : –

Cable finally dropped below indicated support area at 1.2377-80, reviving our bearish view that decline from 1.2674 has resumed and may extend further fall to 1.2300, then previous support at 1.2279, however, reckon downside would be limited to 1.2250 and 1.2220-25 (100% projection of 1.2674-1.2380 measuring from 1.2515), price should stay above another previous support at 1.2206.

In view of this, would not chase this fall here and would be prudent to sell cable again on recovery as 1.2400 should limit upside. Only above 1.2435-40 would abort and suggest an intra-day low is formed, bring a stronger rebound to 1.2470-75 but price should falter below resistance at 1.2505-15.

Trade Idea Wrap-up: GBP/USD - Sell at 1.2400