Trade Idea : GBP/USD – Stand aside

GBP/USD – 1.2205

Most recent candlesticks pattern   : N/A

Trend                                 : Near term down

Tenkan-Sen level                 : 1.2206

Kijun-Sen level                    : 1.2205

Ichimoku cloud top              : 1.2258

Ichimoku cloud bottom        : 1.2250

New strategy  :

Stand aside

Position : –

Target :  –

Stop : –

As cable has recovered after falling to 1.2169 yesterday, suggesting consolidation above this level would be seen and recovery to the lower Kumo (now at 1.2250) is likely, however, reckon upside would be limited and renewed selling interest should emerge around 1.2301 resistance, bring another decline, break of said support at 1.2169 would extend recent selloff to 1.2150 but loss of downward momentum should prevent sharp fall below 1.2120-25 and reckon 1.2100 would hold, bring another rebound later. 

In view of this, would not chase this fall here and would be prudent to look to sell cable on subsequent rebound as 1.2301 resistance should cap upside. Above 1.2325-30 would suggest a temporary low is formed instead, risk rebound to previous support at 1.2347 first.