GBP/USD - 1.5803

Most recent candlesticks pattern : Hammer
Trend                                    : Near term up

Tenkan-Sen level                       :1.5812
Kijun-Sen level                        :1.5785
Ichimoku cloud top                     :1.5805
Ichimoku cloud bottom                 :1.5802

Original strategy :  

Sold at 1.5830, Target: 1.5710, Stop: 1.5865

Position: - Short at 1.5830
Target:  - 1.5710
Stop:- 1.5865

New strategy  : 

Hold short entered at 1.5830, Target: 1.5710, Stop: 1.5865

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

Despite yesterday’s brief breach of 1.5750 support, lack of follow through selling and the subsequent rebound from 1.5730 suggest consolidation would be seen, however, as 1.5841 capped cable’s upside and has retreated again, retaining our bearishness for another corrective decline. A drop below 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.

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).