Trade Idea: GBP/USD — Sell At 1.5445, O.C. O. Buy At 1.5140

GBP/USD - 1.5293

Most recent candlesticks pattern : N/A

Trend : Sideways

Tenkan-Sen level : 1.5296
Kijun-Sen level : 1.5180
Ichimoku cloud top : 1.5026
Ichimoku cloud bottom : 1.5021

Original strategy

Sell at 1.5445, Target: 1.5265, Stop: 1.5510

New strategy

Sell at 1.5445, Target: 1.5265, Stop: 1.5510

O.C.O. Buy at 1.5140, Target: 1.5330, Stop: 1.5075

Despite yesterday's rise to 1.5382, the subsequent retreat from there suggests consolidation would take place and retracement to the Kijun-Sen (now at 1.5180) cannot be ruled out, however, reckon 1.5125/30 (approx. 50% Fibonacci retracement of 1.4873 to 1.5382) would attract renewed buying interest and bring another rally later. Above said resistance would bring stronger retracement of recent decline towards 1.5421-22 (61.8% Fibonacci retracement of 1.5816 to 1.4781 and 38.2% Fibonacci retracement of 1.6459 to 1.4781) but loss of near term upward momentum would cap price below 1.5500, bring retreat later.

In view of the above analysis, whilst we are still looking to venture short on further rise for subsequent retreat, we are also buying cable on pullback. Below 1.5082 (50% Fibonacci retracement of entire rise from 1.4781 to 1.5382) would indicate top is formed and weakness to the Ichimoku cloud area (now at 1.5021-26).

Based on ActionForex.com Technical Outlook