Trade Idea : GBP/USD – Target met and sell at 1.3440

GBP/USD – 1.3392

Most recent candlesticks pattern   : N/A

Trend                                 : Near term up

Tenkan-Sen level                 : 1.3425

Kijun-Sen level                    : 1.3455

Ichimoku cloud top              : 1.3491

Ichimoku cloud bottom        : 1.3482

Original strategy :

Sold at 1.3500, met target at 1.3400

Position : – Short at 1.3500

Target :  – 1.3400

Stop : –

New strategy  :

Sell at 1.3440, Target: 1.3340, Stop: 1.3475

Position : –

Target :  –

Stop : –

Current selloff has reinforced our view that top has been formed at 1.3550 and consolidation with downside bias remains for the fall from 1.3550 to bring retracement of recent rise, hence further weakness to 1.3340-50 (61.8% Fibonacci retracement of 1.3221-1.3550) would be seen, however, near term oversold condition should prevent sharp fall below 1.3300 and reckon 1.3260-65 would hold, bring rebound later. 

In view of this, we are looking to reinstate short on recovery as 1.3440-50 should limit upside.Above the Kijun-Sen (now at 1.3455) would defer and risk test of resistance at 1.3483 but only break there would signal an intra-day low is formed instead, bring another bounce to 1.3530-35 first.