Trade Idea: GBP/USD — Sell At 1.6510

GBP/USD - 1.6430

Most recent candlesticks pattern : N/A

Trend : Sideways

Tenkan-Sen level : 1.6404
Kijun-Sen level : 1.6448
Ichimoku cloud top : 1.6478
Ichimoku cloud bottom : 1.6371

Original Strategy : Sell at 1.6510, Target: 1.6350, Stop: 1.6565

New strategy : Sell at 1.6510, Target: 1.6350, Stop: 1.6565

Although the British pound dropped to a marginal low of 1.6338 this morning, as cable has rebounded in tandem with euro, suggesting a temporary low has been formed there and recovery to 1.6500/10 cannot be ruled out, however, as long as resistance at 1.6558 holds, further consolidation below last week's high of 1.6587 and bring another decline later. Below 1.6338 support would bring stronger correction of recent rise to support at 1.6311, then 1.6285 (50% Fibonacci retracement of 1.5983-1.6587) and later 1.6266.

In view of the above analysis, we prefer to sell sterling on further rise and take profit on such a fall. Above 1.6558 resistance would risk retest of 1.6587, break there would confirm the rise from 1.5983 has once again resumed to 1.6620/30 before prospect of another strong pullback.

Based on ActionForex.com Technical Outlook