On daily plotting of EURGBP , So far the minor trend has been oscillating between sloping channels.
But the bulls have managed to break-out channel resistance, consequently, the current trend spikes above DMAs with crossovers and goes sideways. On the contrary, Shooting stars & Gravestone patterns occurs at 0.8921 and 0.8926 levels respectively.
These patterns are in nature signal weakness, for now, the trend seems slightly bias.
On broader perspectives, and patterns have occurred at peaks of the major uptrend, as a result, these patterns hamper the momentum in previous rallies.
Consequently, the current trend has attempted to slide below 7EMAs, but these sentiments are not backed by both leading oscillators but lagging indicators are indecisive.
For now, the stiff resistance is observed at 0.8973 and the strong supports are at 0.8685 levels. While in the medium term, a range between 0.8250 and 0.9032 is expected.
The prices are consolidating at around the higher-point of the above-stated range (the current 0.8816) even though the minor trend studies remain a little “overbought”, warning the upside is limited in the long term. We are watching the cross in conjunction with the key levels in the legs highlighted above.
Leading oscillators have been little indecisive, even though shows gaining strength in monthly terms.
Contemplating above shot term technical rationale, at spot reference: 0.8923 levels, you can place trades to construct boundary binary options spreads using upper strikes at 0.8953 and lower strikes at 0.8895 levels, these leveraged instruments are likely to fetch magnified effects in payoff structure as long as underlying spot FX remains between these two strikes on expiration.
Currency Strength Index: FxWirePro's hourly EUR spot index has shown 40 (which is ahead of ECB’s ), while hourly GBP spot index was at 53 ( ) while articulating at 05:56 GMT .