Trade Idea: GBP/USD - Sell at 1.6060

GBP/USD - 1.5934

Most recent candlesticks pattern : N/A
Trend : Sideways

Tenkan-Sen level : 1.5915
Kijun-Sen level : 1.6063
Ichimoku cloud top : 1.6268
Ichimoku cloud bottom : 1.6181

Original strategy :

Sell at 1.6060, Target: 1.5860, Stop: 1.6105

New strategy :

Sell at 1.6060, Target: 1.5860, Stop: 1.6105

As the British pound has remained sidelined after falling to 1.5850 yesterday, retaining our view that further consolidation above this support would take place and retracement to 1.6013 (38.2% Fibonacci retracement of 1.6277 to 1.5850) is likely, however, upside should be limited and renewed selling interest should emerge around 1.6063/64 (current level of the Kijun-Sen as well as 50% Fibonacci retracement of 1.6277 to 1.5850), bring another decline later. A break of said support would extend weakness towards recent low at 1.5832 and 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 1.6184) would follow.