GBP/USD - 1.6075

Most recent candlesticks pattern : N/A

Trend                                    : Sideways

Tenkan-Sen level                       :1.6097
Kijun-Sen level                        :1.6071
Ichimoku cloud top                     :1.6046
Ichimoku cloud bottom                 :1.6041

Original strategy :  

Bought at 1.6070, Target: 1.6170, Stop: 1.6035

New strategy  : 

Hold long entered at 1.6070, Target: 1.6170, Stop: 1.6035

Although the British pound retreated after intra-day brief rise to 1.6140 and consolidation below this level would be seen, as long as the Ichimoku cloud (now at 1.6041-46) holds, bullishness remains for another rise later, a break of said resistance would bring a stronger retracement of recent decline to 1.6175-80 (50% Fibonacci retracement of 1.6443-1.5912), however, upside should be limited to 1.6230-40 (50% Fibonacci retracement of 1.6547-1.5912 and 61.8% Fibonacci retracement of 1.6443-1.5912).

In view of this, we are holding on to our long position entered at 1.6070, only below the Ichimoku cloud bottom (now at 1.6041) would dampen this bullish view and prolong choppy trading, risk weakness to 1.6000 but support at 1.5987 (Friday’s low) should hold.