Trade Idea: GBP/USD - Buy At 1.6830

GBP/USD - 1.6999

Most recent candlesticks pattern : N/A

Trend : Sideways

Tenkan-Sen level : 1.6973
Kijun-Sen level : 1.6759
Ichimoku cloud top : 1.6449
Ichimoku cloud bottom : 1.6442

Original Strategy : Buy at 1.6825, Target: 1.7000, Stop: 1.6770

New strategy : Buy at 1.6830, Target: 1.7030, Stop: 1.6770

The British pound traded narrowly after rising to 1.7044 yesterday as traders await the Bank of England rate decision later today at 11:00GMT, suggesting further consolidation would take place ahead of this event and pullback towards minor support at 1.6888 is likely, however, renewed buying interest should emerge around 1.6826 (38.2% retracement of 1.6474 to 1.7044) and bring another rally later today or tomorrow for retest of said resistance and above there would extend gain towards 1.7090/00 before another strong pullback takes place.

In view of this, we would not advise chasing this move before the rate decision and we prefer to wait for such a pullback to enter long. Only a clear drop below support at 1.6745 (previous resistance and would also break the Kijun-Sen at 1.6759) would signal a temporary top is in place and correction to 1.6692 (61.8% Fibonacci retracement) would follow.