We traced out long legged at 1.3046 levels that’s where bears resume and began pulling back the rallies to get back into their business.
The current prices have attempted to slide below 7DMA soon after long legged , rejected at channel resistance 1.3070 (see 4H charts). After the rejection of resistance, we could see selling momentum is quite visible.
But the price behaviour has been oscillating between sloping channels both on intraday as well as monthly graphs.
In between this robust journey, it has slid below 7SMA on intraday and EMAs on monthly charts. While is also guiding us through further downtrend continuation.
To substantiate, Massive volumes have been in conformity to the ongoing trend..! What else is required to confirm the major down trend?
The convergence of leading oscillators to the prevailing slumps:
RSI: Currently, trending below 30 levels converging to the price dips, but there is no signs of recoveries, intensified selling momentum signals downward targets.
Stochastic: Same is the case on this leading indicator, bears are trying to take over the rallies again as the slow noises with extreme selling pressures as %D line crosses over %K even below oversold trajectory.
Hence, we would foresee GBP on weaker side in the upcoming days ahead of tomorrow's retail sales data in the UK and unemployment claims on the US side.
As a result of technical reasoning, we see pair likely to head towards 1.2950 levels first near terms and 1.28 or below levels in the weeks to come.
Trade tips: Well, on speculative objectives for an intraday horizon, deploy Option tunnel spreads which are the binary version of a put spreads that are likely capture strikes at higher levels and fetch you the leveraging effects to the profitability.