Trade Idea: GBP/USD - Buy at 1.6210

GBP/USD - 1.6319

Most recent candlesticks pattern : N/A
Trend : Sideways

Tenkan-Sen level : 1.6295
Kijun-Sen level : 1.6248
Ichimoku cloud top : 1.6087
Ichimoku cloud bottom : 1.6037

Original strategy :

Buy at 1.6160, Target: 1.6350, Stop: 1.6095

New strategy :

Buy at 1.6210, Target: 1.6370, Stop: 1.6145

Despite intra-day resumption of the rise from 1.5832, lack of follow through buying and the retreat from 1.6380 suggest minor consolidation would take place and break of the Tenkan-Sen (now at 1.6295) would bring correction to the Kijun-Sen (now at 1.6248), however, 1.6211-18 (previous support and 38.2% Fibonacci retracement of 1.5957 to 1.6380) should attract renewed buying interest, bring another rally later. Above said resistance would extend gain to 1.6412, however, loss of near term upward momentum would prevent sharp move beyond 1.6442 (50% projection of 1.5896-1.6357 measuring from 1.6211) and price should falter well below 1.6496 (61.8% projection level), bring retreat later.

In view of the above analysis, still prefer to look to buy cable on further retreat. Only below 1.6138 (50% Fibonacci retracement of 1.5896 to 1.6380) would signal top is in place and risk weakness towards the Ichimoku cloud top (now at 1.6087).