GBP/USD - 1.5793

Most recent candlesticks pattern : Hammer
Trend                                    : Near term up

Tenkan-Sen level                       :1.5763
Kijun-Sen level                        :1.5783
Ichimoku cloud top                     :1.5829
Ichimoku cloud bottom                 :1.5813

Original strategy :  

Sell at 1.5800, Target: 1.5700, Stop: 1.5835

Position: -
Target:  -
Stop:-

New strategy  : 

Sell at 1.5830, Target: 1.5710, Stop: 1.5865

Position: -
Target:  -
Stop:-

Despite intra-day brief breach of 1.5750 support, lack of follow through selling and current rebound from 1.5730 suggest consolidation with mild upside bias would be seen and test of the Ichimoku cloud bottom (now at 1.5813) is likely, however, still reckon the upper Kumo (now at 1.5829) would limit upside and Friday’s high of 1.5862 should hold, bring another decline later. A break of said support at 1.5730 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 and bring rebound later.

In view of this, we are looking to sell cable on recovery but at a higher level. 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).