Candlesticks Trades | Written by vnchanger.net | Sep 21 09 6:00 GMT |

GBP/USD - 1.6178

Trend : Downward

Tenkan-Sen level : 1.6415
Kijun-Sen level : 1.6460
Ichimoku cloud top : 1.6594
Ichimoku cloud bottom : 1.6428

New strategy :

Sell at 1.6178, Target: 1.6128, Stop: 1.6218

The British pound has remained under pressure after breaking the support at 1.6322 and 1.6288, suggesting the rise from 1.6113 has ended and the decline from 1.6742 would extend to 1.6190/00, however, support at 1.6113 should hold from there due to oversold condition. Looking ahead, once this support is penetrated, this would signal the major correction from 1.7044 top to retracement medium term upmove is under way for eventual fall to 1.6020 (1.618 times projection of 1.6742 to 1.6403 measuring from 1.6569) next week.

In view of this, we are still looking to sell cable on recovery but with a lower level as the Tenkan-Sen (now at 1.6415) should limit upside. Only a firm break above the Kijun-Sen (now at 1.6460) would signal a low is possibly formed, then gain to 1.6500/10 would be seen but resistance at 1.6569 should remain intact.