Trade Idea: GBP/USD - Sell at 1.6060

GBP/USD - 1.5937

Most recent candlesticks pattern : N/A
Trend : Sideways

Tenkan-Sen level : 1.6016
Kijun-Sen level : 1.6063
Ichimoku cloud top : 1.6268
Ichimoku cloud bottom : 1.6192

Original strategy :

Sell at 1.6075, Target: 1.5900, Stop: 1.6140

New strategy :

Sell at 1.6060, Target: 1.5860, Stop: 1.6125

Despite intra-day selloff to 1.5850, as cable has recovered after holding above support at 1.5832, suggesting consolidation would be seen and whilst retracement to the Tenkan-Sen (now at 1.6016) and possibly the Kijun-Sen (now at 1.6063), however, renewed selling interest should emerge below resistance at 1.6077 (previous support turned resistance) and bring another decline later, break of said support would extend weakness towards recent low at 1.5832. Looking ahead, once this support is penetrated, then the decline from 1.6879 should extend weakness to 1.5790/00 but previous chart point at 1.5708 should remain intact.

In view of this, we are looking to sell cable on recovery for such a fall. Only above minor support at 1.6113 (previous support, Thursday’s low) would suggest low is in place, then correction to the Ichimoku cloud bottom (now at 1.6192) would follow.