Trade Idea: GBP/USD – Buy At 1.5975
By actionfx
GBP/USD – 1.6094
Most recent candlesticks pattern : N/A
Trend : Near term down
Tenkan-Sen level : 1.6111
Kijun-Sen level : 1.6035
Ichimoku cloud top : 1.6167
Ichimoku cloud bottom : 1.5973
New strategy
Buy at 1.5975, Target: 1.6150, Stop: 1.5910
Although the British pound retreated in tandem with euro, last week’s strong rebound from 1.5832 to 1.6236 signals a temporary low has been formed at 1.5832 and whilst further weakness to the Kijun-Sen (now at 1.6035) is likely, reckon the Ichimoku cloud bottom (now at 1.5973) would limit downside and bring another leg of corrective rise later. Above the Ichimoku cloud top (now at 1.6167 would suggest this move is under way and retest of 1.6236 resistance would follow. Looking ahead, breach of this resistance would extend near term rise from 1.5832 towards 1.6277 (50% Fibonacci retracement of 1.6722-1.5832).
In view of the above analysis, we prefer to look to buy cable on further fall. Below 1.5923 (a previous support level) would dampen this near term bullish view and indicate the rebound from 1.5832 is over, then weakness to 1.5880/90 would be seen later.
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