GBP/USD - 1.5908

Most recent candlesticks pattern : Hammer
Trend                                    : Near term up

Tenkan-Sen level                       :1.5903
Kijun-Sen level                        :1.5853
Ichimoku cloud top                     :1.5800
Ichimoku cloud bottom                 :1.5796

Original strategy :  

Sold at 1.5830, stopped at 1.5845

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

New strategy  : 

Stand aside

Position: -
Target:  -
Stop:-

The British pound rallied in tandem with euro yesterday and although the breach of resistance at 1.5884 confirms recent upmove from 1.5234 low has resumed, loss of near term upward momentum should prevent sharp move beyond 1.5845-50 (61.8% projection of 1.5531-1.5884 measuring from 1.5730) 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 not chase this move here and we prefer to stand aside in the meantime. Below the Kijun-Sen (now at 1.5853) would suggest top is possibly formed and risk test of the Ichimoku cloud (now at 1.5796-00) but break below there is needed to confirm.