GBP/USD - 1.4348

Most recent candlesticks pattern : N/A Trend : Down

Tenkan-Sen level :1.4388 Kijun-Sen level :1.4353 Ichimoku cloud top :1.4379 Ichimoku cloud bottom :1.4337

New strategy :

Buy at 1.4255, Target: 1.4355, Stop: 1.4205

Although cable has retreated partly due to cross-selling against Japanese yen on risk aversion, as yesterday's rebound from 1.4238 to 1.4467 suggests a temporary low has been formed there, reckon downside would be limited and this support should hold, bring another leg of corrective upmove later. Above minor resistance at 1.4425/30 would add credence to this view and bring further subsequent rise towards 1.4500 but reckon resistance at 1.4522 would hold from here.

In view of this, we are looking to buy sterling on further fall. Below 1.4200/05 would abort and extend recent decline to 1.4170/80, however, loss of downward momentum would prevent sharp fall below 1.4124 (50% projection of 1.5046 to 1.4249 measuring from 1.4522).