Trade Idea: GBP/USD – Sell At 1.6060
By Actionforex
GBP/USD – 1.6021
Most recent candlesticks pattern : N/A
Trend : Sideways
Tenkan-Sen level : 1.5968
Kijun-Sen level : 1.6063
Ichimoku cloud top : 1.6268
Ichimoku cloud bottom : 1.6178
Original strategy
Sell at 1.6060, Target: 1.5860, Stop: 1.6105
New strategy
Sell at 1.6060, Target: 1.5860, Stop: 1.6125
Although the British pound has continued to edge higher after rebounding from 1.5850 (this week’s low) and correction of recent decline to 1.6063/64 (current level of the Kijun-Sen as well as 50% Fibonacci retracement of 1.6277 to 1.5850) cannot be ruled out, reckon renewed selling interest would emerge there and bring another decline later. A break of yesterday’s low at 1.5904 would signal correction from 1.5850 has ended, then retest of this support and the recent low at 1.5832 would follow, once the latter support is penetrated, then the decline from 1.6879 should extend weakness to 1.5790/00 but previous chart point at 1.5708 should remain intact.
In view of this, we are still looking to sell cable on recovery for such a fall. Only above minor support at 1.6113 (previous support, Thursday’s low) would suggest low is in place, then correction to the Ichimoku cloud bottom (now at 1.6184) would follow.
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I do not understand why a cable is gowing down. Recently BP announced its profits that did not surprise its shareholders. This means that investros will escape from equity msrket to currency market. In turn this will push a cable higher. On the other hand JPY is weak that any negative fluctuation stirs it.
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