Trade Idea: GBP/USD — Sell at 1.5095

GBP/USD - 1.4993

Most recent candlesticks pattern : N/A
Trend : Down

Tenkan-Sen level : 1.5066
Kijun-Sen level : 1.5066
Ichimoku cloud top : 1.5180
Ichimoku cloud bottom : 1.5015

Original strategy :

Sell at 1.5085, Target: 1.4940, Stop: 1.5150

New strategy :

Sell at 1.5095, Target: 1.4940, Stop: 1.5160

Although the British pound fell to indicated downside target at 1.4940 (61.8% Fibonacci retracement of 1.4781 to 1.5197), as cable has recovered from 1.4936, suggesting minor consolidation would be seen and rebound to the convergence of the Tenkan-Sen and Kijun-Sen (now both at 1.5066) cannot be ruled out, however, renewed selling interest should emerge around 1.5095/00 (approx. 61.8% Fibonacci retracement of 1.5197 to 1.4936) and bring another decline later. Break of said support would add credence to our view that correction from 1.4781 has ended at 1.5197 and extend weakness to 1.4900 and then towards support at 1.4855 which is expected to hold on first attempt.

In view of the above analysis, we are looking to sell on recovery for such a fall. Only above resistance at 1.5197 would bring stronger correction of recent decline towards 1.5272 (61.8% Fibonacci retracement of 1.5575 to 1.4781).

Based on ActionForex.com Technical Outlook