Trade Idea: GBP/USD - Stand aside
GBP/USD - 1.5610
Most recent candlesticks pattern : N/A
Trend : Down
Tenkan-Sen level : 1.5651
Kijun-Sen level : 1.5658
Ichimoku cloud top : 1.5905
Ichimoku cloud bottom : 1.5729
Original strategy :
Sell at 1.5760, Target: 1.5560, Stop: 1.5825
New strategy :
Stand aside
Although the British pound has retreated from 1.5742 (met renewed selling exactly at the Ichimoku cloud bottom) in tandem with euro, a breach of recent low at 1.5535 is needed to confirm recent decline has resumed and extend weakness to 1.5500, however, loss of near term downward momentum should prevent sharp fall below 1.5450 and reckon 1.5412 (100% projection of 1.6879 to 1.5832 measuring from 1.6459) would hold from here, bring a much-needed correction later next week.
In the event said support continues to hold and cable rebounds back above the Ichimoku cloud bottom (now at 1.5729), then another corrective rise to 1.5766 would follow but break there is needed to bring retracement of recent decline to 1.5800, then 1.5850 (previous support turned resistance).
As near term outlook is mixed, we prefer to stand aside in the meantime. Due to Chinese New Year, next update will be on Wednesday 17 Feb.
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