More supply side is seen at this juncture in recent past.
We think the breach decisively above these levels would take this pair to expose towards 1.6717 levels.
Otherwise, 1.4860 can also not be disregarded on southwards (which is 23.6% fibo retracement) if it does not manage to hold above resistance levels.
Prices do not evidence corresponding volumes as it is nearing 1.5570.
oscillator converges to the rising prices both on weekly and monthly graphs.
oscillator signals indecision as there is no trace of %D line crossover even after 80 levels which is overbought territory.
GBPCHF should remain in a choppy range now, with GBP outperforming in the crosses. GBPCHF is expected to broadly remain under pressure with technical resistance at 1.5570, any break above these levels on closing basis creates more potential but equally weaker if it doesn’t hold and 23.6% retracements on southwards more likely.
Option trade set up: - Diagonal debit put spreads to hedge, binary calls to speculate
The recommendation would be buying 2M (1%) In-The-Money -0.63 delta puts and simultaneously writing an equal number of near-month (-1%) Out-Of-The-Money puts. The delta of combined position should be at around -0.20.
This strategy is typically employed when the options trader is on the underlying exchange rate over the longer 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.