GBP/USD - 1.5793

Most recent candlesticks pattern : Hammer
Trend                                    : Near term up

Tenkan-Sen level                       :1.5782
Kijun-Sen level                        :1.5814
Ichimoku cloud top                     :1.5839
Ichimoku cloud bottom                 :1.5835

Original strategy :  

Buy at 1.5750, Target: 1.5860, Stop: 1.5715

Position: -
Target:  -
Stop:-

New strategy  : 

Buy at 1.5750, Target: 1.5860, Stop: 1.5715

Position: -
Target:  -
Stop:-

Although cable has rebounded after intra-day fall to 1.5764, reckon the Kijun-Sen (now at 1.5814) would limit upside and near term downside risk remains for the fall from 1.5880 to bring retracement of recent upmove to 1.5750, however, reckon 1.5736-41 (previous resistance and 61.8% Fibonacci retracement of 1.5655-1.5880) would limit downside and bring another rise later. A break of the Ichimoku cloud (now at 1.5835-39) would suggest the pullback from 1.5880 has ended and bring test of 1.5865 (yesterday’s high), then retest of 1.5880 but above there is needed to signal recent rise from 1.5644 has resumed and bring further gain towards 1.5929 (previous resistance).

In view of this, we are looking to buy cable on next decline. Only below said support at 1.5736-41 would abort and signal top is formed and bring further fall to 1.5700 later.