Cable is trading very flat for the past one week, while the current price behavior forms whipsaws pattern after heavy losses from the peaks of 1.3549 levels in the previous session due to resurfacing political worries (refer daily plotting).
The UK and EU have reached the deal for the first and second phases in the recent past. The pair has recovered almost 100 pips from the low of 1.3301 made on Dec 15th 2017 and is currently trading in a narrow range at 1.3380 levels.
The prices in the intermediate trend, for now, have still been moving in rising channel pattern (on weekly plotting), there has been tight tug of war between bulls and bears upon the formation of shooting star and hammer patterns, hammer pattern candlestick (which is bullish in nature) still intensifies the bull rallies.
Hammer has occurred on daily terms as well, as a result, the mild upswings are observed but restrained well below 21DMAs.
These buying sentiments are not substantiated by both leading & lagging oscillators.
On a broader perspective, the intermediate trend and the major trend has gone into the consolidation phase that is coupled with the indication from the RSI’s upward convergence, with the prevailing strength signaled by this leading oscillator and the fundamental developments, we could foresee price to inch higher levels in the days to come. But it shouldn’t be perceived as the best opportunity for long buildups in the long run.
You could still see as and when the price touches channel resistance and support, steep dips and sharp spikes have been observed upon the formation of bearish and bullish candlesticks (refer weekly plotting).
For now, more upside potential is foreseen as the current prices testing support at 7EMAs.
On the flipside, the major stiff resistances are seen at 1.3652 levels. But both the leading oscillators have been constantly converging upwards on weekly terms to signal strength in rallies.
Trade tips: On an intraday speculative basis, we advocate boundary binary strategy to leverage yields. Use upper strikes at 1.3410 and 1.3330 levels.
Alternatively, with a view to arresting upside risks, deploy longs in futures contracts of mid-month tenors.
Currency Strength Index: FxWirePro's hourly GBP spot index is trending lower -43 levels (which is bearish). Hourly USD spot index was at -88 (bearish) while articulating (at 06:05 GMT).
For more details on the index, please refer below weblink:
http://www.fxwirepro.com/currencyindex
FxWirePro launches Absolute Return Managed Program. For more details, visit:
