Trade Idea Wrap-up: GBP/USD – Sell at 1.6380
By admin | August 3, 2011
GBP/USD – 1.6279
Most recent candlesticks pattern : N/A
Trend : Up
Tenkan-Sen level :1.6264
Kijun-Sen level :1.6277
Ichimoku cloud top :1.6383
Ichimoku cloud bottom :1.6368
Original strategy :
Sell at 1.6365, Target: 1.6225, Stop: 1.6400
New strategy :
Sell at 1.6380, Target: 1.6230, Stop: 1.6415
Despite intra-day brief breach of 1.6238, lack of follow through selling and current rebound from 1.6224 suggest consolidation above this level would take place and retracement to intra-day high of 1.6329 cannot be ruled out, however, reckon the Ichimoku cloud bottom (now at 1.6368) would limit upside and 1.6380-83 (61.8% Fibonacci retracement of 1.6477 to 1.6224 and current level of the upper Kumo) should attract renewed selling interest, bring another decline later. A break of said support would extend decline from yesterday’s high of 1.6477 for a stronger retracement of recent upmove to 1.6195-00 (previous resistance) but reckon 1.6185 (61.8% Fibonacci retracement of 1.6005 to 1.6477) would hold.
In view of this, we would look to sell cable on further recovery. Only above 1.6410/15 would abort and signal fall from 1.6477 has ended and bring a stronger rebound to 1.6440 but price should falter well below resistance at 1.6477.
