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In this situation, she probably noticed you looking at her or she read from your body language that you were going to approach so she took out her phone as a sign to go away, so i say an IOD. Thats not to say you cant approach with an interesting gambit anyway...
I disagree. These girls know the game as good as we do. One of the first things we do as pua's is Indicate disinterest when being indirect. I would take that as an IOI, reach down, check if my balls were there and make my approach. Its the same thing if a girl is in a set next to you with her back towards you. You might think that is a IOD, but no, its a proximity alert. She is subconciously doing this.
No woman is unapproachable.
I have also seen a vid of a pua walking right up to girl while she was talking on the phone and number closed her within 3 minutes AND she had a boyfriend.