Trade Idea: GBP/USD - Hold Short Entered at 1.6440

GBP/USD - 1.6383

Most recent candlesticks pattern : N/A
Trend : Near term down

Tenkan-Sen level : 1.6432
Kijun-Sen level : 1.6482
Ichimoku cloud top : 1.6556
Ichimoku cloud bottom : 1.6466

Original strategy :

Sold at 1.6440, Target: 1.6290, Stop: 1.6500

New strategy :

Hold short entered at 1.6440, Target: 1.6290, Stop: 1.6455

Despite intra-day anticipated rebound back to the Tenkan-Sen, the British pound did meet renewed selling pressure there and has retreated again, bearishness remains for the decline from 1.7044 top to resume for a retest of 1.6275 support, break there would bring a stronger correction of recent up move to 1.6241 (50% projection of 1.7044 to 1.6275 measuring from 1.6225, however, reckon 1.6150 (61.8% projection level) would hold from here.

In view of the above analysis, we are holding on to our short position entered at 1.6440 but one must book profit on such a move. Only above the Kijun-Sen (now at 1.6482) would prolong choppy trading and rebound to the Ichimoku cloud (now at 1.6556) cannot be ruled out but resistance at 1.6625 should remain intact.