Before we begin with this technical write up, let’s glance through our previous write up on this pair, where we had advocated short hedges in order to arrest risks a few days ago:
Now see the pair has tumbled from the previous month highs of 1.3658 to the current 1.3129 levels, since then the above hedging advice would have arrested these FX loses smartly, rest is history.
For now, the pair has been hampering every upward movements by the occurrence of the and railroad patterns at 1.3283 and 1.3151 levels respectively. Consequently, the bears manage to evidence slumps below DMAs , while both leading & lagging oscillators have been in bears' favor (refer ).
Last month, although bulls have attempted to extend rallies above resistance but could not sustain above 21-EMAs, as a result, the major trend seems to be resumed again in .
Both leading oscillators seem to be in bears’ favor, constantly evidences downward convergence to signal the strength in rallies (on dailies). While curves have been slightly indecisive on monthly but show downward convergence to the price dips that signals intensified selling momentum (on daily terms).
On the other hand, lagging oscillators are also in sync with the same stance offered by the leading indicators. indicates the price slumps to prolong further, while the current prices remain below DMAs with DMA crossover.
The consolidation phase turns into again, the major trend restrained below 21-EMA.
Well, the overall minor trend is weaker for sure, while the consolidation phase in the major trend seems to be edgy.
FxWirePro's currency strength index for the dollar ahead of quarterly GDP of the U has been extremely weaker 62 ( ), while GBP has been mildly by flashing +23 for the day.
Well, as a result of above technical reasoning, on speculative grounds we advise one touch binary put options.
This strategy is likely to fetch leveraged yields than spot FX as long as the underlying keeps dipping.