GBP/USD - 1.6033

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

Tenkan-Sen level                       :1.6005
Kijun-Sen level                        :1.5988
Ichimoku cloud top                     :1.6134
Ichimoku cloud bottom                 :1.6048

Original strategy :  

Sell at 1.6140, Target: 1.5990, Stop: 1.6175

New strategy  : 

Sell at 1.6140, Target: 1.5990, Stop: 1.6175

Despite intra-day initial retreat to 1.5976, the British pound found renewed buying interest there and has rebounded, suggesting further consolidation above yesterday’s low at 1.5937 would take place and retracement to 1.6090/95 cannot be ruled out, however, reckon 1.6134-42 (current level of the Ichimoku cloud top and previous resistance) would limit upside and bring another decline later. A sustained breach of intra-day support at 1.5976 would bring retest of 1.5937 but break there is needed to confirm decline from 1.6403 top has resumed and extend weakness to 1.5900 but loss of near term downward momentum should prevent sharp fall below 1.5870/75 (50% Fibonacci retracement of 1.5345 to 1.6403) and bring rebound later.

In view of this, we are still looking to sell cable on further recovery. Only above 1.6170 (50% Fibonacci retracement of 1.6403 to 1.5937) would abort and signal temporary low is formed, bring retracement to1.6200/10.