FxWirePro: Delta risk reversal signals most likely EUR/GBP short term upswings

As you can make out from the nutshell, bulls gaining buying interest as 1W ATM contracts showing positive flashes but this is yet to be confirmed in long run even on technical charts. The same ATM contracts for next 6 months to 1 year expiries suggest prevailing long lasting downtrend still remains intact.

While EOD technical charts have shown some recovery from last week's lows at 0.7239 levels. Intraday sentiments are also slightly bearish bias but no need for panic. On the contrary, leading indicators fortify signs of indecision as these downswings were contradicting with upward divergence. Things seem like taking track back onto its usual business on euro side, the euro continue to freezing its long lasting loses gradually against sterling and held sturdy in early Asian sessions.

On daily charts, the convergence on RSI is seen with rising prices on daily charts as it is trending near 58.5758 levels with no proper supportive signal from stochastic curve as an attempt of %D crossover above 80 levels which can neither be considered as oversold nor overbought pressure as of now. These signals can be attributed as positive movers for those who expect price slumps; however closing figures should be crucial for long-term decision making.

Trade Tips:

On a swing trading perspective, it is smart to sell on rallies but for daily positional traders, short term rallies are expected, we advocate buying binary delta puts on rallies for targets of 20-25 pips. Intraday charts sell signal caused by sharp bearish candles with long real body and RSI curve is also moving in convergence with dipping prices.