Trade Idea: GBP/USD - Sell at 1.6250

GBP/USD - 1.6285

Most recent candlesticks pattern : N/A
Trend : Down

Tenkan-Sen level : 1.6230
Kijun-Sen level : 1.6183
Ichimoku cloud top : 1.6438
Ichimoku cloud bottom : 1.6360

New strategy is : Sell at 1.6250, Target: 1.6100, Stop: 1.6310

The British pound just broke below indicated Kijun-Sen support, suggesting the rebound from 1.5983 has possibly ended at 1.6380 and further fall to 1.6095/1.6100 is likely but it is necessary to see a clear break below 1.6075/80 to confirm the decline from 1.6745 top has resumed for further weakness to 1.6020/3, then retest of 1.5983 probably to take place next week.

In view of the above analysis, we are still looking to sell cable on recovery but one should book profit on such a fall. Only above 1.6330 would prolong choppy consolidation above 1.5983 and bring another rise to 1.6380, then 1.6454 (61.8% Fibonacci retracement of 1.6745-1.5983) but reckon 1.6546 resistance should continue to cap sterling’s upside.