Trade Idea : GBP/USD – Hold short entered at 1.3440

GBP/USD – 1.3401

Most recent candlesticks pattern   : N/A

Trend                                 : Near term up

Tenkan-Sen level                 : 1.3412

Kijun-Sen level                    : 1.3416

Ichimoku cloud top              : 1.3478

Ichimoku cloud bottom        : 1.3467

Original strategy :

Sold at 1.3440, Target: 1.3340, Stop: 1.3475

Position : – Short at 1.3440

Target :  – 1.3340

Stop : – 1.3475

New strategy  :

Hold short entered at 1.3440, Target: 1.3340, Stop: 1.3465

Position : – Short at 1.3440

Target :  – 1.3340

Stop : – 1.3465

Cable recovered after the anticipated selloff to 1.3371 and minor consolidation would be seen, however, reckon upside would be limited to 1.3450 and bring another decline, below said support would extend the fall from 1.3550 for retracement of recent rise to 1.3340-50 (61.8% Fibonacci retracement of 1.3221-1.3550) but 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 holding on to our short position entered at 1.3440. Above 1.3460-65 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.