FxWirePro: EUR/GBP short term upswings to prevail as delta risk reversal indicates costlier hedging upside risks

As you can make out from the nutshell, bulls gaining buying interest as 1W ATM contracts showing positive flashes and this has evidenced short spikes in technical charts as well but this is yet to be confirmed in long run 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 0.6949 levels. Intraday sentiments are sideways to slightly bearish bias and leading indicators fortify these sideway swings with stagnant convergence. Things seem like taking track back onto its usual business on euro side, the euro continue to freezing its long lasting loses against sterling and held sturdy in early Asian trades today. If we have to infer from delta risk reversal nutshell, for next 3 months it would be little bias towards euro side.

The convergence on RSI is seen with rising prices on daily charts as it is trending near 43.8549 levels with no proper supportive signal from stochastic curve as an attempt of %K crossover above 20 levels which can be considered as oversold pressure as of now. These signals can be attributed as positive movers for those who expect price recoveries; however closing figures should be crucial for long-term decision making.

Hence, for another 3-4 days of trading sessions may show upswing rallies then upon proper confirmation by subsidiary indicators trend reversal signals are identified, so far it is still upward bias in our opinion.