Cable (GBPUSD) is plunged from the peaks of 1.2813 to the recent lows of 1.2454 levels. The intraday volatility is tepid and, prices seem to be drifting into a range after pulling back from 1.2813 Fibonacci resistance, and holding the 1.2455 support region.
A clear break of 1.2455 would suggest a further shift back into the previous range, with 1.2250-1.1075 the support in that process. While over 1.2455, the longer we can develop a range, the greater the chance that we still see a move towards 1.30-1.32 levels.
Prior to which, bulls in minor trend breakout stiff resistance, hanging man & shooting star signal intensified bearish momentum, current price slides below 7-DMA, both leading oscillators are in line with prevailing downswings.
Hanging man & bearish engulfing patterns disrupt consolidation phase, current price tumbles below 7, 21 &100-EMAs despite mild upswing, major downtrend resumes & hits all-time lows as both leading & lagging oscillators bearish bias.
Trading tips:
Contemplating above technical rationale, at spot reference: 1.2583 levels, tunnel spreads are advocated on trading grounds with upper strikes at 1.2650 level and lower strikes at 1.2403 levels.
Alternatively, ahead of BoE monetary policy, activated shorts in GBPUSD futures contracts of July’20 deliveries with an objective of arresting potential slumps.
