Trade Idea: GBP/USD - Sell at 1.5830

GBP/USD - 1.5626

Most recent candlesticks pattern : N/A
Trend : Down

Tenkan-Sen level : 1.5759
Kijun-Sen level : 1.5838
Ichimoku cloud top : 1.6151
Ichimoku cloud bottom : 1.6080

New strategy :

Sell at 1.5830, Target: 1.5600, Stop: 1.5895

The British pound continued to move lower in tandem with euro partly due to cross-selling versus yen on risk aversion and early breach of chart support at 1.5708 confirms a downside break of indicated range of 1.5708-1.7044 has taken place, hence stronger retracement of early upmove is under way for weakness towards 1.5600. However, near term oversold condition should prevent sharp fall below 1.5543 (100% projection of 1.7044 to 1.5708 measuring from 1.6879) and price should stay above 1.5500.

In view of the above analysis, we are looking to sell cable again on recovery as renewed selling interest should emerge below the Kijun-Sen (now at 1.5838) and resistance at 1.5850 (previous support) should hold. Only above 1.5895/00 would suggest a temporary low is possibly formed and risk retracement to 1.5950/60.