Trade Idea: GBP/USD - Sell at 1.5445 O.C.O. Buy at 1.5140

GBP/USD - 1.5307

Most recent candlesticks pattern : N/A
Trend : Sideways

Tenkan-Sen level : 1.5296
Kijun-Sen level : 1.5180
Ichimoku cloud top : 1.5047
Ichimoku cloud bottom : 1.5026

Original strategy :

Sell at 1.5445, Target: 1.5265, Stop: 1.5510

O.C.O. Buy at 1.5140, Target: 1.5330, Stop: 1.5075

New strategy :

Sell at 1.5445, Target: 1.5265, Stop: 1.5510

O.C.O. Buy at 1.5140, Target: 1.5330, Stop: 1.5075

Cable’s intra-day sideways trading is expected to continue and although retracement to the Kijun-Sen (now at 1.5180) cannot be ruled out, reckon 1.5125/30 (approx. 50% Fibonacci retracement of 1.4873 to 1.5382) would attract renewed buying interest and bring another rally later. Above resistance at 1.5382 (yesterday’s high) would bring stronger retracement of recent decline towards 1.5421-22 (61.8% Fibonacci retracement of 1.5816 to 1.4781 and 38.2% Fibonacci retracement of 1.6459 to 1.4781) but loss of near term upward momentum would cap price below 1.5500, bring retreat later.

In view of the above analysis, we are trading both sides of the market, venture short on further rise for subsequent retreat and look to buy cable on pullback. Below 1.5082 (50% Fibonacci retracement of entire rise from 1.4781 to 1.5382) would indicate top is formed and weakness to the Ichimoku cloud area (now at 1.5021-26).