Trade Idea: GBP/USD - Sell at 1.6470

GBP/USD - 1.6371

Most recent candlesticks pattern : N/A
Trend : Sideways

Tenkan-Sen level : 1.6465
Kijun-Sen level : 1.6558
Ichimoku cloud top : 1.6395
Ichimoku cloud bottom : 1.6383

Original strategy : Sell at 1.6560, Target: 1.6400, Stop: 1.6610

New strategy is : Sell at 1.6470, Target: 1.6320, Stop: 1.6525

The British pound fell again mainly due to active cross-selling against Japanese yen on risk aversion after the release of soft U.S. job data and price broke through Ichimoku cloud already, suggesting the decline from 1.6745 top would extend further decline towards 1.6274 (50% Fibonacci retracement of 1.5803 to 1.6745), however, support at 1.6231 is likely to limit cable’s downside and support area at 1.6187-1.6209 should hold today.

Therefore, we are still looking to sell cable on recovery but one must book profit when price approaches 1.6300 as the calculated support at 1.6274 should hold from here. In the event sterling rises above 1.6546 resistance, this would signal first leg of correction from 1.6745 has ended instead, then stronger rebound to 1.6600/05 cannot be ruled out but 1.6650/60 should limit upside and price should stay well below resistance at 1.6745.