Trade Idea: GBP/USD - Sell At 1.5800

GBP/USD - 1.5632

Most recent candlesticks pattern : N/A

Trend : Down

Tenkan-Sen level : 1.5598
Kijun-Sen level : 1.5803
Ichimoku cloud top : 1.6068
Ichimoku cloud bottom : 1.6008

Original strategy

Sell at 1.5800, Target: 1.5600, Stop: 1.5865

New strategy

Sell at 1.5800, Target: 1.5600, Stop: 1.5865

As cable has recovered after holding above yesterday's low at 1.5535, suggesting further consolidation above there would take place and retracement to 1.5700 is likely, however, renewed selling should emerge around the Kijun-Sen (now at 1.5803) and bring another decline later. Break of said support would extend one more fall to 1.5500, however, loss of near term downward momentum should prevent sharp fall below 1.5450 and reckon 1.5412 (100% projection of 1.6879 to 1.5832 measuring from 1.6459) would hold from here, bring a much-needed rebound later.

In view of the above analysis, we prefer to look to sell cable on subsequent recovery. Only a firm breach above resistance at 1.5850 (previous support turned resistance) would suggest a temporary low is in place