On 4H charts, the current prices have slid below 7DMA despite the attempts of bouncing back but at the same time testing supports @ 21DMA, breaking below would bring in more shorting opportunities.
During the early Asian sessions, sentiments began mounting as the pair has been able to display 7DMA crossing below 21DMA on an intraday charts.
This month, the Cable has been sliding through sloping channel and been able to drag the last month’s slumps to the multi-year lows with massive volumes which is in conformity to the robust major (see monthly charts).
RSI: Currently, (14) has been converging downwards to the prevailing slumps on both intraday as well as monthly graphs, thus we still see strength swings.
Stochastic: This leading oscillator noises with extreme selling pressures on both intraday and monthly (current %D line flashes at 51 levels).
While same is the case on , that lies below zero levels popping up with crossover. This is a signal of long-term continuation amid minor upswings.
Hence, we would still foresee GBP on weaker side on BoE's rate cut effects.
Trade tips: As a result of above technical reasoning we see tunnel spreads which are binary versions of the debit put spreads. This strategy seems best suitable on speculative grounds for certain yields but with leveraging effects. This is just for an intraday trading perspective, but in the long run, this is certainly not yet an ideal time for fresh longs.