GBP/AUD bulls drained at channel resistance

FX:GBPAUD   British Pound / Australian Dollar
In the minor trend of GBPAUD , hanging man , shooting star and gravestone doji patterns pop up at peaks of 1.8350, 1.8326, 1.8356 and 1.8239 levels, consequently, the downswing slide below 7DMAs with the bearish MACD crossover.

While both leading oscillators ( RSI and stochastics) shows downward convergence that signals the intensified the selling momentum, more dips seem to be likely on the flurry of all these bearish indications.

To substantiate this bearish stance, MACD shows bearish crossover that indicates downtrend to prolong further.

Even though we see mild upswings for today, after testing supports at 1.8174 and 1.8141 areas, these deceptive rallies are not backed by both momentum and trend indicators, any breach below would re-intensify bearish momentum on the daily terms.

While on intermediate trend, the consolidation phase seems to have been exhausted exactly at rising channel resistance as you could spot out sharp shooting star pattern pop up at the same level, both leading indicators have been indecisive on this timeframe despite earlier rallies but plummeted prices to end this week (refer weekly plotting).

The bearish patterns, such as potential gravestone doji on weekly and failure swings at channel resistance signals overbought pressures and shrinking previous buying momentum in the consolidation phase of this pair. On the contrary, if at all bulls resume and manage to break-out channel resistance, the extension of the uptrend is most likely.

Trade tips: At spot reference: 1.8240, contemplating above technical reasoning, amid ongoing rallies but restrained below 1.8314 (near 2-days’ highs) and 1.8174 levels likely to act as the strong support, one can speculate this pair by tunnel spread binary options strategy using above-stated levels as two strikes. You rest assured with the certain but leveraged payoffs as long as underlying spot FX keeps dipping but remains above upper strikes on expiration.

Alternatively, one can stay long in futures contracts of near month tenors with a view to arresting further potential risks.

Currency Strength Index: FxWirePro's hourly GBP spot index has turned into 12 (which is neutral), while hourly AUD spot index was at shy above -9 (neutral) while articulating (at 10:15 GMT ).
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