GBP/USD - 1.6039

Most recent candlesticks pattern : Shooting star
Trend                                    : Near term down

Tenkan-Sen level                       :1.6047
Kijun-Sen level                        :1.6021
Ichimoku cloud top                     :1.6033
Ichimoku cloud bottom                 :1.5993

Original strategy :  

Sold at 1.6055, Target: 1.5950, Stop: 1.6090

New strategy  : 

Hold short entered at 1.6055, Target: 1.5950, Stop: 1.6085

As the British pound has rebounded after holding above the Kijun-Sen, suggesting further consolidation would take place, however, as long as intra-day resistance at 1.6083 holds, bearishness remains for another retreat to the Ichimoku cloud bottom (now at 1.5993) but break of intra-day support at 1.5978 is needed to signal the correction from this week’s low at 1.5937 has ended and bring test of yesterday’s low at 1.5943. Looking ahead, only below there would bring resumption of decline from 1.6403 top for retest of 1.5937, then towards 1.5900 but reckon 1.5870/75 (50% Fibonacci retracement of 1.5345 to 1.6403) would hold from here.

In view of this, we are holding on to our short position entered at 1.6055. Above said resistance at 1.6083 would bring retracement of recent decline to 1.6100 but resistance at 1.6142 should limit upside and 1.6170 (50% Fibonacci retracement of 1.6403 to 1.5937) would remain intact.