Original strategy :
Buy at 1.5400, Target: 1.5530, Stop: 1.5365
New strategy :
Buy at 1.5385, Target: 1.5500, Stop: 1.5350
As the British pound has retreated again after intra-day brief bounce to 1.5491, retaining our view that near term downside risk remains for the fall from 1.5574 (last week's high) to bring retracement of recent upmove, below intra-day support at 1.5432 would bring weakness to 1.5389-92 (50% Fibonacci retracement of 1.5205-1.5574 and previous resistance), however, reckon 1.5350 would hold and bring another upmove later. Above said resistance at 1.5491 would bring test of the upper Kumo (now at 1.5519), break there would signal the fall from 1.5574 has ended and bring a stronger rebound to 1.5550-55, then retest of 1.5574.
In view of this, whilst we are still looking to buy cable on further corrective decline, one must exit on such rise. Only below 1.5345-50 (61.8% Fibonacci retracement of 1.5205-1.5574) would risk a stronger correction of recent upmove towards 1.5300-10 first.
IMOH, Clement I.
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