Cable edges higher to create more bullish traction but stimulus expected from leading oscillators, major downtrend appears to be intact:
The interim bulls have now halted in the recent past, slide below strong support at 1.26 levels and you could see buying momentum is absolutely shrunk away (see daily charts).
Rallies may extend but bulls attempts restrained within range 7EMA, rallies likely to see the stiff resistance of 1.2859.
The intensity of the bearish trend of GBPUSD still remains intact (tumbled more than 25% in just 2 and odd years).
We reiterate that in the last couple of weeks, the attempts of bull-swings take the short term trend in sideways.
But RSI & Stoch are indicative of further dips on monthly charts, whereas RSI on weekly terms has been indecisive but slightly bulls’ favor (trending in a linear direction above 31 levels).
Slow stochastic on the other hand noises with the attempts of %K line cross over though below oversold region on monthly terms but no convincing bullish momentum.
On long-term perspectives, dipping prices, Massive volumes, leading & lagging indicators still signal weakness..! What else is required to confirm major downtrend?
Most importantly, please be noted the despite the strength in this pair from the last two months, the current prices on this plotting are well below EMAs.
Hence, contemplating above technical reasoning, although there is short term buying opportunities, we would still foresee further GBP weakness in medium terms, as a result, we recommend the below option strategy to monitor the puzzling swings.
Trade tips:
Well, capitalizing on upswings, we recommend deploying “credit put spreads”, any continued upswings should not be panicky, instead, use them for writing expensive ITM put options.
So, short 1W (-1%) in the money put with positive theta if you expect that GBPUSD would spike up moderately over the next near future but certainly not beyond your imagination, simultaneously, buy next month at the money -0.49 delta put option.
The interim bulls have now halted in the recent past, slide below strong support at 1.26 levels and you could see buying momentum is absolutely shrunk away (see daily charts).
Rallies may extend but bulls attempts restrained within range 7EMA, rallies likely to see the stiff resistance of 1.2859.
The intensity of the bearish trend of GBPUSD still remains intact (tumbled more than 25% in just 2 and odd years).
We reiterate that in the last couple of weeks, the attempts of bull-swings take the short term trend in sideways.
But RSI & Stoch are indicative of further dips on monthly charts, whereas RSI on weekly terms has been indecisive but slightly bulls’ favor (trending in a linear direction above 31 levels).
Slow stochastic on the other hand noises with the attempts of %K line cross over though below oversold region on monthly terms but no convincing bullish momentum.
On long-term perspectives, dipping prices, Massive volumes, leading & lagging indicators still signal weakness..! What else is required to confirm major downtrend?
Most importantly, please be noted the despite the strength in this pair from the last two months, the current prices on this plotting are well below EMAs.
Hence, contemplating above technical reasoning, although there is short term buying opportunities, we would still foresee further GBP weakness in medium terms, as a result, we recommend the below option strategy to monitor the puzzling swings.
Trade tips:
Well, capitalizing on upswings, we recommend deploying “credit put spreads”, any continued upswings should not be panicky, instead, use them for writing expensive ITM put options.
So, short 1W (-1%) in the money put with positive theta if you expect that GBPUSD would spike up moderately over the next near future but certainly not beyond your imagination, simultaneously, buy next month at the money -0.49 delta put option.
