Trade Idea: GBP/USD - Sell at 1.6470

GBP/USD - 1.6351

Most recent candlesticks pattern : N/A
Trend : Sideways

Tenkan-Sen level : 1.6412
Kijun-Sen level : 1.6534
Ichimoku cloud top : 1.6423
Ichimoku cloud bottom : 1.6395

Original strategy : Sell at 1.6530, Target: 1.6380, Stop: 1.6585

New strategy is : Sell at 1.6470, Target: 1.6500, Stop: 1.6325

Despite intra-day brief bounce to 1.6432, the British pound met renewed selling interest right at the Ichimoku cloud top and fell again in London session to as low as 1.6301. Whilst we still expect sterling’s decline from 1.6745 top to extend to 1.6274 (50% Fibonacci retracement of 1.5803 to 1.6745), near term upside risk has increased for a corrective bounce back to the Ichimoku cloud top (now at 1.6423) but price is likely to falter below 1.6471 (38.2% Fibonacci retracement of 1.6745 to 1.6301) and bring another decline.

Therefore, instead of chasing this fall here, we prefer to sell cable on recovery as calculated resistance at 1.6523 (50% Fibonacci retracement of 1.6745 to 1.6301) should cap upside. Only break of resistance at 1.6546 would indicate the first leg of correction from 1.6745 top has ended, then stronger rebound to 1.6600/10 would follow but price should falter below 1.6650/60 and turn south again next week.