After the rejection of resistance at 1.4462 levels, bears are back in business.
In addition to the above mentioned risky event, amid season from both Fed and BoE that are scheduled in upcoming weeks, the pair has been tumbling below crucial supports at 1.4343 and 1.4152 levels with ease.
Sterling has been convincingly weighed down since late last year by worries that the referendum on EU membership on June 23rd could lead to Britain leaving the bloc.
Britain's hefty current account deficit – 7% of output in the last quarter of 2015 - makes the economy, and the currency, vulnerable to any pull-back in investment flows.
In between this journey, the prices have slid well below 7 & 21DMAs with an attempt of 7DMA crossing below 21DMA.
Leading oscillators have been converging to these slumps,
RSI: Currently, (14) trending below 43 levels converging to the price dips from the last couple of days, intensified selling momentum signals downward targets.
Stochastic: Bears are trying to take over the rallies again as the slow noises with extreme selling pressures as %D line crosses over %K even near oversold region (current %D line flashes at 57.9187).
On a broader perspective, even though an attempt of bounce in last month were restrained by bears when the price nears at 7EMA (see monthly chart, highs of 1.4769 have collapsed vigorously). While signals long-term downtrend continuation.
On a speculative basis, one can think of leveraged derivative instruments, taking above technical reasoning into consideration, it is wise to buy one touch binary put at every price rise and bring in leveraging effect using these speculative swings with OTM strikes for a minimum target of 30-35 pips southwards.
Alternatively, short-term traders can also eye on shorts of mid-month for targets of 1.4231 or below levels.