GBP/USD - 1.5816

Most recent candlesticks pattern : Hammer
Trend                                    : Near term up

Tenkan-Sen level                       :1.5869
Kijun-Sen level                        :1.5869
Ichimoku cloud top                     :1.5803
Ichimoku cloud bottom                 :1.5796

New strategy  : 

Stand aside

Position: -
Target:  -
Stop:-

Remark: Due to holidays, no update from 9 Feb – 20 Feb, Intra-day Trade Idea update will resume on Tuesday - 21 Feb 2012.

Despite intra-day brief rise to 1.5929, the subsequent sharp retreat signals a temporary top has been formed there and consolidation with downside bias is seen for test of the Ichimoku cloud (now at 1.5796-1.5803) but a sustained breach below support at 1.5789 (yesterday’s low) is needed to confirm and bring retracement of recent upmove to 1.5750 and then 1.5730 (this week’s low) which is likely to hold on first testing.

On the upside, expect recovery to be limited to the convergence of the Tenkan-Sen and Kijun-Sen (now both at 1.5869) and bring further consolidation, only break of said resistance at 1.5929 would signal the rise from 1.5234 has resumed and extend gain to 1.5950, however, loss of near term upward momentum should prevent sharp move beyond there and upside should be limited to 1.5990-95 (50% Fibonacci retracement of 1.6747-1.5234), cable should falter well below 1.6012 (50% projection of 1.5321-1.5884 measuring from 1.5730), bring another strong pullback later.

In view of this, would be prudent to stand aside in the meantime.