FxWirePro: Cable slides below wedge baseline, clears supports 1.4725 – GBP/USD trade setup

While plotting both daily and monthly charts we have encountered with enough bearish swings with mammoth volumes show the tendency to confer trend line.

To begin with New Year series the pair has broken a strong support at 1.4725

The formation of falling wedge was completed with bearish engulfing candle to break below base line of this pattern to signal even more dips are underway coupled with other bearish indications.

Leading oscillators (RSI and stochastic) indicate downward convergence with price slumps on the charts of all time periods. Current RSI is trending southwards at 37.1482 converging with every price dip.

While on slow stochastic curve, absolutely no scenes of bullish crossover, currently %D line crossover is moving on even below oversold territory.

While the current spot FX is sliding below lagging indicator (21DMA) on all time frames again that signifies these price dips to prevail further in long term.

Trade recommendation: We recommend shorting near month futures for target at 1.4615 with a stop loss at 1.4805, thereby observed handsome risk reward ratio. But on every rise in prices risky speculators may even eye upon one touch binary delta puts options for target of 25-30 pips.