Wednesday, May 9, 2012

Trade Idea Wrap-up: GBP/USD – Sell at 1.6155

GBP/USD - 1.6114

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

Tenkan-Sen level                       :1.6112
Kijun-Sen level                        :1.6118
Ichimoku cloud top                     :1.6158
Ichimoku cloud bottom                 :1.6158

Original strategy :  

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

Position: -
Target:  -
Stop:-

New strategy  : 

Sell at 1.6155, Target:: 1.6040, Stop: 1.6190

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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