FxWirePro: EUR/GBP down streak intensifies with shooting star – prefer BPS on dubious downtrend

Technical briefing:

A sharp shooting star pattern candle occurred at 0.7289 on weekly technical charts that is signifying down-streak again. This pair had taken a brief pause while a slight recovery took place from 19^th August, bounces from 0.7031 (lows of 19^th) to 0.7420 levels. Intraday sentiments are bearish bias and leading indicators fortify these downswings with downward convergence. Things seem like taking track back onto its usual business on GBP side, the pair continues to flow its long lasting loses and held sturdy in near future.

The convergence on RSI is seen on daily charts as it is trending near 60.7820 levels with a supportive signal from stochastic curve as %D line crossover above 80 levels which indicates overbought pressure. These signals can be attributed as supportive movers for those who expect price slumps.

Trade tips: In order to participate in uptrend which is quite uncertain, bear put spread shall be used over Protective Put as the premiums on naked puts prove too costlier. Bear Put Spread = Long ATM -0.5 delta Put + Sell another -1.5% OTM Put with lower strike price with net delta should be at -0.37.

But on a swing trading perspectives, 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.