GBP/USD Chartpack - Technicals & Trade Setup
GBP/USD 3-black crows manage to breach below channel support, spinning top and hanging man nudges below DMAs – Trade tunnel spreads:
GBPUSD forms spinning top and hanging man patterns at 1.3422 and 1.3408 levels that restrain rallies below stiff resistance at 1.3463 levels and nudges prices below DMAs (refer daily chart).
The prices in intermediate trend constantly drop below 7DMAs after breaching below rising channel support and bearish DMA, EMA & MACD crossovers, both leading oscillators substantiate bearish interests.
The current cable prices remain under pressure after yesterday’s HoC (house of common) vote. While under 1.3309-1.3463 resistance, bearish risks remain intact.
Below 1.3020-1.2935 levels are the next support region.
Our ideal scenario is for a base to develop between here and 1.2935 as part of a medium-term range, with 1.37-1.40 expected resistance in that process. A rally through 1.3290 and then 1.3450 is currently needed to suggest that base is in place.
On broader perspectives, 3-black crows pattern has occurred at 1.3525 levels, the bears manage to breach channel support after this bearish pattern in the consolidation phase, price slides below EMAs, both leading & lagging indicators in tandem with dips (refer weekly terms).
We reckon the bear cycle that started back in 2007 at 2.1160 completed at 1.1490. On a multi-year basis, this suggests mean reversion back to 1.50-1.60 in a long run again, but not in any near future.
On trading grounds, at spot reference: 1.3140, we advocate buying tunnel option spreads using 1.3177 as upper strikes and 1.3050 as lower strikes.
Alternatively, one can initiate shorts in futures contracts of mid-month tenors with a view to arresting potential downside risks as the underlying pair is on the verge of extending price dips which is 3w lows.
Currency Strength Index: FxWirePro's hourly GBP spot index is flashing -32 (which is bearish ahead of today's BoE monetary policy meeting), while hourly USD spot index was at 125 (highly bullish) while articulating (at 06:32 GMT).
The above indices are also conducive to the derivatives strategy as advocated above.
GBPUSD forms spinning top and hanging man patterns at 1.3422 and 1.3408 levels that restrain rallies below stiff resistance at 1.3463 levels and nudges prices below DMAs (refer daily chart).
The prices in intermediate trend constantly drop below 7DMAs after breaching below rising channel support and bearish DMA, EMA & MACD crossovers, both leading oscillators substantiate bearish interests.
The current cable prices remain under pressure after yesterday’s HoC (house of common) vote. While under 1.3309-1.3463 resistance, bearish risks remain intact.
Below 1.3020-1.2935 levels are the next support region.
Our ideal scenario is for a base to develop between here and 1.2935 as part of a medium-term range, with 1.37-1.40 expected resistance in that process. A rally through 1.3290 and then 1.3450 is currently needed to suggest that base is in place.
On broader perspectives, 3-black crows pattern has occurred at 1.3525 levels, the bears manage to breach channel support after this bearish pattern in the consolidation phase, price slides below EMAs, both leading & lagging indicators in tandem with dips (refer weekly terms).
We reckon the bear cycle that started back in 2007 at 2.1160 completed at 1.1490. On a multi-year basis, this suggests mean reversion back to 1.50-1.60 in a long run again, but not in any near future.
On trading grounds, at spot reference: 1.3140, we advocate buying tunnel option spreads using 1.3177 as upper strikes and 1.3050 as lower strikes.
Alternatively, one can initiate shorts in futures contracts of mid-month tenors with a view to arresting potential downside risks as the underlying pair is on the verge of extending price dips which is 3w lows.
Currency Strength Index: FxWirePro's hourly GBP spot index is flashing -32 (which is bearish ahead of today's BoE monetary policy meeting), while hourly USD spot index was at 125 (highly bullish) while articulating (at 06:32 GMT).
The above indices are also conducive to the derivatives strategy as advocated above.