Trade Idea : GBP/USD – Hold short entered at 1.3175

GBP/USD – 1.3132

Most recent candlesticks pattern   : N/A

Trend                                 : Near term down

Tenkan-Sen level                 : 1.3120

Kijun-Sen level                    : 1.3130

Ichimoku cloud top              : 1.3154

Ichimoku cloud bottom        : 1.3118

Original strategy :

Sold at 1.3175, Target: 1.3045, Stop: 1.3180

Position : – Short at 1.3175

Target :  – 1.3045

Stop : – 1.3180

New strategy  :

Hold short entered at 1.3175, Target: 1.3065, Stop: 1.3175

Position : – Short at 1.3175

Target :  – 1.3065

Stop : – 1.3175

Although the British pound has recovered after falling to 1.3086 yesterday and consolidation with initial upside bias would be seen, reckon the upper Kumo (now at 1.3154) would limit upside and bring another decline later, below said support would add credence to our bearish view that the rebound from 1.3039 has ended at 1.3178, bring further fall to 1.3055-60, then retest of this support. Looking ahead, only a drop below 1.3027 low would confirm early downtrend has resumed for weakness to psychological support at 1.3000, then towards 1.2970-75.  

In view of this, we are holding on to our short position entered at 1.3175. Above 1.3175-80 would risk gain to 1.3200, break there would defer and prolong choppy trading, risk a stronger rebound to 1.3235-40 first.