Trade Idea: GBP/USD - Exit Short Entered At 1.6320

GBP/USD - 1.6285

Most recent candlesticks pattern : N/A

Trend : Down

Tenkan-Sen level : 1.6205
Kijun-Sen level : 1.6183
Ichimoku cloud top : 1.6488
Ichimoku cloud bottom : 1.6435

Original strategy : Sold at 1.6320, Target: 1.6175, Stop: 1.6380

New strategy is : Exit short entered at 1.6320

The rebound from 1.5983 turned out to be stronger than expected and although cable has retreated after rising to 1.6379/80 yesterday, as price is now trading well above both Tenkan-Sen and Kijun-Sen, upside risk remains for stronger correction of the decline from 1.6745 and gain to Ichimoku cloud bottom (now at 1.6435) cannot be ruled out, then 1.6454 (61.8% Fibonacci retracement of 1.6745-1.5983) but reckon 1.6546 resistance would hold from here.

In view of this, we are exiting our short and standing aside in the meantime. Only a clear break of Kijun-Sen (now at 1.6183) would suggest rebound has possibly ended, below 1.6135 (61.8% Fibonacci retracement of 1.5983 to 1.6380) would confirm and fall to 1.6050/60 would follow.