Current prices have bounced above DMA curves on , and for now targeting to hit 1.4143 resistance levels.
For now, buying signal generated by moving average lagging indicators as 7DMA crosses over 21DMA.
This environment is substantiated by leading oscillators.
converges to the rising prices both on daily and weekly graphs.
While, oscillator signals momentum as there is no trace of %D line crossover even after 80 levels which is overbought territory.
On weekly plotting, ongoing uptrend is extremely robust that signalled particularly by and .
We think the decisive breach above 1.4143 levels would most likely to set a new and to expose towards 1.4492 levels, otherwise retest of support at 1.3903 can also not be disregarded.
Prices also evidence corresponding volumes along with this upswings on weekly basis.
GBPCHF should be bias, else remain in a choppy range now but certainly not a shorting option for now.
Option trade set up: Since 1W ATM IV of this pair is on lower side, at around 7.54%, we see opportunities in shorting deep out of the money options, hence the below recommendation is the best suitable.
So on hedging grounds, go long in 1M (1%) In-The-Money 0.62 delta call and simultaneously writing 1W (1%) Out-Of-The-Money call.
This strategy is typically employed when the options trader is on the underlying exchange rate over the medium term but is neutral to mildly in the near term.
But on speculative grounds, as there is intraday buying trend is on with positive technical indications, we see buying opportunities in binary calls for a targets of 20-25 pips.