Thursday, May 3, 2012

Trade Idea Wrap-up: GBP/USD – Buy at 1.6110

GBP/USD - 1.6198

Most recent candlesticks pattern : N/A
Trend                                    : Near term up

Tenkan-Sen level                       :1.6188
Kijun-Sen level                        :1.6188
Ichimoku cloud top                     :1.6218
Ichimoku cloud bottom                 :1.6202

Original strategy :  

Buy at 1.6110, Target: 1.6230, Stop: 1.6075

Position: -
Target:  -
Stop:-

New strategy  : 

Buy at 1.6110, Target: 1.6230, Stop: 1.6075

Position: -
Target:  -
Stop:-

Although cable’s recovered after marginal fall to 1.6159, as long as resistance at 1.6248 holds, near term downside risk remains for the fall from 1.6304 to bring a deeper retracement of recent upmove to previous support at 1.6153, however, near term oversold condition should limit downside to 1.6100-10 and support at 1.6082 should hold and bring another rebound later. A break of indicated resistance at 1.6248 would suggest low is possibly formed and bring rebound to 1.6280/85, break there would signal the correction from 1.6304 temporary top has ended and bring a retest of this level.

In view of this, we are still looking to buy cable on next decline. Only a firm breach below previous support 1.6076 would abort and risk weakness to 1.6050-55 before prospect of another rebound later.


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