GBP/USD - 1.5833

Most recent candlesticks pattern : Hammer
Trend                                    : Near term up

Tenkan-Sen level                       :1.5816
Kijun-Sen level                        :1.5801
Ichimoku cloud top                     :1.5796
Ichimoku cloud bottom                 :1.5773

Original strategy :  

Sold at 1.5830, Target: 1.5710, Stop: 1.5845

Position: - Short at 1.5830
Target:  - 1.5710
Stop:- 1.5845

New strategy  : 

Hold short entered at 1.5830, Target: 1.5710, Stop: 1.5845

Position: - Short at 1.5830
Target:  - 1.5710
Stop:- 1.5845

As cable has continued to edge higher on back of intra-day rally in euro, suggesting caution on our short position entered at 1.5830 and 1.5845 must hold to retain bearishness for another retreat, below the Ichimoku cloud bottom (now at 1.5773) would signal intra-day top is possibly formed and bring another fall towards 1.5730. A below this support would add credence to our view that top has been formed at 1.5884 last week and bring 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.

In view of this, we are holding on to our short position entered at 1.5830. Only above 1.5862 would abort and signal low is formed and risk a retest of last week’s high of 1.5884 but break there is needed to signal upmove has resumed for gain to 1.5995-00 (50% projection of 1.5321-1.5798 measuring from 1.5701).