Trade Idea: GBP/USD - Sell at 1.5300
Original strategy :
Buy at 1.4970, Target: 1.5125, Stop: 1.4905
New strategy :
Sell at 1.5300, Target: 1.5100, Stop: 1.5365
Although intra-day rise to 1.5188 suggests the rebound from 1.4798 may extend gain to 1.5250, as broad outlook is still consolidative and cable should continue to trade within early established range of 1.4781-1.5382, upside should be limited to 1.5300 and bring retreat later. Below 1.4983-93 (current level of the Ichimoku cloud bottom and the Kijun-Sen) would signal aforesaid rebound has possibly ended and bring weakness to 1.4890/00 later.
In view of the above analysis, we are inclined to turn cautious seller on subsequent rise for such a retreat. Only above indicated upper trading range would shift risk to upside for a stronger retracement of early decline to 1.5440/50.
Trade Idea: USD/CHF - Sell at 1.0640
Original strategy :
Sell at 1.0735, Target: 1.0570, Stop: 1.0800
New strategy :
Sell at 1.0640, Target: 1.0500, Stop: 1.0705
Current breach of indicated support at 1.0558 signals early rebound from 1.0507 has ended at 1.0752 and consolidation with downside bias remains for weakness towards said support, however, break there is needed to confirm decline from 1.0899 top has resumed and extend weakness towards 1.0450 and possibly towards 1.0424 (61.8% Fibonacci retracement of 1.0130 to 1.0899) but reckon oversold condition would limit downside to 1.0405 (50% Fibonacci retracement of entire rise from 0.9910 to 1.0899).
In view of the above analysis, we are still looking to sell dollar on recovery but at a lower level. A firm breach above intra-day resistance at 1.0684 would prolong choppy consolidation but only above key resistance at 1.0752 would turn outlook bullish and signal the correction from 1.0899 top has ended at 1.0507, bring test of 1.0805/10 later.
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