Chart and candlestick pattern formed - Rising channel pattern (on weekly plotting) and hammer patterns with bullish DMA crossover (on daily plotting).
Contemplating and synthesizing these chart and candle patterns, coupled with the fact that the intermediate trend has been uptrend that has gone into the consolidation phase, we foresee more likely to spike further.
More upside potential is foreseen as 21DMA crosses over 200-DMAs which is the bullish DMA crossover.
Please be noted that as and when the hammer patterns have occurred on both daily as well as weekly terms, they have shown their bullish effects so far.
Well, for now, the major supports are observed at channel baseline, and bulls have managed to test these levels already, the sustenance above would likely to drag rallies upto 1.3272 where the next strong resistance is observed.
The major stiff resistances are at 1.3272 and 1.3305.
Both the leading oscillators have been constantly converging upwards on both timeframes to signal strength in prevailing rallies.
Trade tips:
Contemplating above technical rationale, it is wise to initiate longs via one touch binary call options for the target of 25-30 pips, we advocate long via the leveraged products that are likely to add magnified impact on the trade yields.
Alternatively, the aggressive volatility traders are advised to buy 2M straps on hedging grounds.
Currency Strength Index: FxWirePro's hourly GBP spot index is displaying shy above 139 levels (extremely bullish), while hourly USD spot index was inching lower towards -44 (mildly bearish) while articulating (at 08:58 GMT). For more details on the index, please refer below weblink:
http://www.fxwirepro.com/currencyindex
Hence, bulls of this pair are most likely to extend rallies upon our above stated technical rationale.
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