Trade Idea: GBP/USD – Stand aside

Most recent candlesticks pattern : N/A Trend : Sideways

Tenkan-Sen level :1.4850 Kijun-Sen level :1.4930 Ichimoku cloud top :1.4890 Ichimoku cloud bottom :1.4887

New strategy :

Stand aside

Although the British pound fell marginally to 1.4815 this morning (yesterday's low was 1.4819), lack of follow through selling and current recovery suggest further consolidation would be seen and gain towards the Kijun-Sen (now at 1.4930 cannot be ruled out, however, as outlook remains consolidative, upside should be limited to 1.4990/00 and further choppy trading within 1.4720-1.5054 range would be seen.

Below said support would extend the fall from 1.5046 to 1.4765/70 but reckon indicated lower range at 1.4720 would remain intact.

As near term outlook is still mixed, we prefer to stand aside for now and look to sell cable on subsequent recovery.