Trade Idea: GBP/USD - Sell at 1.5915

GBP/USD - 1.5767

Most recent candlesticks pattern : N/A
Trend : Down

Tenkan-Sen level : 1.5917
Kijun-Sen level : 1.5951
Ichimoku cloud top : 1.6268
Ichimoku cloud bottom : 1.6189

New strategy :

Sell at 1.5915, Target: 1.5730, Stop: 1.5980

The British pound tumbled after breaking indicated support at 1.5832-50 on broad-based selloff in sterling (by UK, US, Japanese and Swiss names together with model funds) and further weakness towards chart support at 1.5708 is now in progress, however, oversold condition should limit downside to 1.5643-59 (100% projection of 1.6277 to 1.5850 measuring from 1.6070 and 1.618 times projection of 1.6459 to 1.6077 measuring from 1.6277) would hold from here, bring a strong rebound later tomorrow.

In view of the above analysis, we are looking to sell cable again on recovery as renewed selling interest should emerge around the Tenkan-Sen (now at 1.5917) and bring such a decline. A firm break above the Kijun-Sen (now at 1.5951) would signal a temporary low is possibly formed and risk correction to 1.6000 and later towards 1.6070.