new strategy

Hold short entered at 1.6120, Target: 1.6005, Stop: 1.6150
Position: - Short at 1.6120
Target: - 1.6005
Stop:- 1.6150
Cable has traded narrowly after yesterday’s rise to 1.6122 and although near term upside risk remains for marginal gain, as broad outlook remains consolidative, reckon resistance at 1.6128-31 would continue to hold and bring another decline, below the Kijun-Sen (now at 1.6096) would bring weakness to 1.6065-66 (previous support and current level of the Ichimoku cloud top) but break there is needed to signal top is formed and bring test of the lower Kumo (now at 1.6049), then 1.6025-30. Looking ahead, break there would signal the rebound from 1.6002 has ended and another fall to this support would follow.
In view of this, we are holding on to our short position entered at 1.6120. Only above said resistance at 1.6128-31 would abort and signal recent upmove from 1.5828 is still in progress and extend gain to previous resistance at 1.6175-78 later.