FxWirePro: GBP/AUD Bulls Counter Gravestone Doji At Channel Support – Trading & Hedging Setup

After brief halt during last weekend, GBPAUD resumes its bullish rout above 1.89 levels, the pair is currently trading 1.8930 level.

The minor trend spikes through rising channel pattern, where bulls resume at channel support (refer daily chart). Gravestone doji and shooting star pattern have nudged the prices below DMAs, but bulls are countering now capitalising on channel support.

The current price spikes above 21DMAs, for now, more rallies are on cards as both leading oscillators (RSI and Stochastic curves) substantiate bullish momentum.

The intermediate trend also spikes through rising channel, upswings are failing at channel resistance on this timeframe upon resembling shooting star pattern (refer monthly chart), but both leading and lagging oscillators signal interim buying sentiments intact.

Trading Tips: One trading grounds, at spot reference: 1.8929 levels, we advocate one touch call options strategy with upper strikes at 1.90 levels, the strategy is likely to fetch leveraged yields as long as the underlying price keeps spiking towards higher strikes on the expiration.

Alternatively, on hedging grounds, we advocate initiating longs in GBPAUD futures contracts of February’2020 delivery as further upside risks are foreseen in the short-run and simultaneously, shorts in futures of April’2020 delivery. 

Thereby, the foreign traders, who are dubious about puzzling swings, can directionally position in their FX exposures. The directional implementation of the same trading theme by further allow for a correlation-induced discount in the options trading also if you choose strikes appropriately.