GBP/USD - 1.5756

Original strategy :  

Sell at 1.5800, Target: 1.5700, Stop: 1.5835

Position: -
Target:  -
Stop:-

New strategy  : 

Sell at 1.5800, Target: 1.5700, Stop: 1.5835

Position: -
Target:  -
Stop:-

Cable’s intra-day breach support at 1.5750 (Friday’s high) confirms our view that top has been formed at 1.5884 last week and consolidation with downside bias remains for retracement of recent upmove to 1.5701 support, break there would bring deeper correction to 1.5666 (61.8% Fibonacci retracement of 1.5531-1.5884), however, reckon downside would be limited to previous support at 1.5642 and bring rebound later.

In view of this, we are looking to sell cable on recovery as the Ichimoku cloud top (now at 1.5826) would limit upside, only above 1.5831 would abort and signal low is formed and risk a stronger rebound to Friday’s high of 1.5862 but break there is needed to signal correction from 1.5884 has ended instead, bring retest of this level later.