Trade Idea: GBP/USD - Sell at 1.5800

GBP/USD - 1.5643

Most recent candlesticks pattern : N/A
Trend : Down

Tenkan-Sen level : 1.5598
Kijun-Sen level : 1.5759
Ichimoku cloud top : 1.6068
Ichimoku cloud bottom : 1.6025

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 the British pound continued to find decent demand above yesterday’s low at 1.5535, suggesting further consolidation above there would take place and retracement to 1.5700 and later to the Kijun-Sen (now at 1.5759) cannot be ruled out, however, renewed selling interest should emerge around 1.5800/03 (50% Fibonacci retracement of 1.6070 to 1.5535) and resistance at 1.5850 (previous support turned resistance) should hold, 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 would suggest a temporary low is in place and risk 1.5900/10.