Wednesday, May 9, 2012

Trade Idea Update: GBP/USD – Sell at 1.6140

GBP/USD - 1.6086

Original strategy :  

Bought at 1.6130, stopped at 1.6095

Position: - Long at 1.6130
Target:  -
Stop:- 1.6095

New strategy  : 

Sell at 1.6140, Target:: 1.6040, Stop: 1.6175

Position: -
Target:  -
Stop:-

Cable’s intra-day selloff after meeting renewed selling interests around the Ichimoku cloud suggests the decline from 1.6304 top is still in progress and further weakness to 1.6040 would be seen, however, near term oversold condition should limit downside to previous support at 1.6009 and risk from there is seen for a rebound later.

In view of this, we are looking to turn short on recovery as the Ichimoku cloud (now at 1.6158) should limit upside, bring such a decline. Only above minor resistance at 1.6169 would abort and signal an intra-day low is formed, bring a stronger rebound to yesterday’s high of 1.6199.


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