Trade Idea: GBP/USD - Buy at 1.6180

GBP/USD - 1.6275

Most recent candlesticks pattern : N/A
Trend : Sideways

Tenkan-Sen level : 1.6302
Kijun-Sen level : 1.6209
Ichimoku cloud top : 1.6037
Ichimoku cloud bottom : 1.6026

Original strategy :

Buy at 1.6205, Target: 1.6380, Stop: 1.6140

New strategy :

Buy at 1.6180, Target: 1.6350, Stop: 1.6115

As the British pound has retreated after intra0day rise to 1.6357, suggesting minor consolidation below there would take place and correction to the Kijun-Sen (now at 1.6209) is likely, however, reckon 1.6180 (approx. 38.2% Fibonacci retracement of 1.5896 to 1.6357) would attract renewed buying interest and bring another rally. Above said resistance would extend the rise from 1.5832 towards chart resistance at 1.6412, however, loss of upward momentum would prevent sharp move beyond there and reckon 1.6450/60 would hold from here.

In view of the above analysis, still prefer to look to buy cable on further retreat. Only a sustain breach of 1.6127 (50% Fibonacci retracement of 1.5896 to 1.6357) would signal top has been formed and risk weakness towards support at 1.6063.