Trade Idea: GBP/USD - Sell at 1.5470 O.C.O. Buy at 1.5110

GBP/USD - 1.5294

Most recent candlesticks pattern : N/A
Trend : Down

Tenkan-Sen level : 1.5361
Kijun-Sen level : 1.5410
Ichimoku cloud top : 1.5582
Ichimoku cloud bottom : 1.5550

Original strategy :

Sell at 1.5420, Target: 1.5260, Stop: 1.5485

New strategy :

Sell at 1.5470, Target: 1.5260, Stop: 1.5535

O.C.O. Buy at 1.5110, Target: 1.5310, Stop: 1.5045

Although intra-day selloff to 1.5244 (met our indicated downside target at 1.5245 - 61.8% projection of 1.6459 to 1.5535 measuring from 1.5816) signals recent decline remains in progress and further weakness to 1.5200 and possibly 1.5165 (1.236 times projection of 1.6879 to 1.5832 measuring from 1.6459) is likely, loss of downward momentum should prevent sharp fall below 1.5105/10 (approx. 50% projection of 1.6277 to 1.5345 measuring from 1.5575) and bring rebound later.

In view of the above analysis, whilst we are still looking to sell cable on recovery, we would also venture long on subsequent decline to 1.5110 in anticipation of a possible rebound back towards the Tenkan-Sen (now at 1.5361). Only above 1.5575-82 (previous resistance and current level of the Ichimoku cloud top) would signal a temporary low is in place.