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GBP/USD - 1.6408

Trend : Up

Tenkan-Sen level : 1.6384
Kijun-Sen level : 1.6279
Ichimoku cloud top : 1.6369
Ichimoku cloud bottom : 1.6247

New strategy

Buy at 1.6397, Target: 1.6447, Stop: 1.6357

Cable has rebounded after finding renewed buying at 1.6322 this morning, however, break of 1.6445 resistance is needed to confirm the rise from 1.6113 low has resumed and extend to 1.6469 (38.2% Fibonacci retracement of 1.7044 to 1.6113) and possibly towards 1.6500. However, reckon 1.6579 (50% Fibonacci retracement) would hold from here due to overbought condition and bring retreat later.

In view of this, we are still looking to buy sterling on dips as the Kijun-Sen (now at 1.6279) should continue to limit cable’s downside. Only a drop below 1.6240-47 (61.8% Fibonacci retracement of 1.6113 to 1.6445 and current level of the Ichimoku cloud bottom) would signal the aforesaid rise has ended, then fall to 1.6190/00 would follow but the British pound should stay well above recent low at 1.6113.