Trade Idea Wrap-up: GBP/USD - Sell at 1.2270
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Trade Idea Wrap-up: GBP/USD - Sell at 1.2270
Most recent candlesticks pattern : N/A
Tenkan-Sen level : 1.2143
Ichimoku cloud top : 1.2279
Ichimoku cloud bottom : 1.2218
Sell at 1.2270, Target: 1.2130, Stop: 1.2305
Sell at 1.2270, Target: 1.2130, Stop: 1.2305
As cable has recovered after intra-day brief fall to 1.2107, suggesting consolidation above this level would be seen and corrective bounce to 1.2200 and later 1.2240-50 cannot be ruled out, however, reckon upside would be limited to 1.2271 resistance and bring another decline later, below said support at 1.2107 would signal recent decline is still in progress and may extend weakness towards 1.2077-82 (61.8% projection of 1.2775-1.2199 measuring from 1.2433 and previous support) which is likely to hold on first testing.
In view of this, would not chase this fall here and would be prudent to sell cable on recovery as said resistance at 1.2271 should limit upside. A firm break above the upper Kumo (now at 1.2279) would abort and signal a temporary low is formed instead, risk rebound to 1.2300 first.
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