FxWirePro: GBP/AUD back-to-back bearish patterns and whipsaws plummet price below 7-SMA – Trade via tunnel spreads on intensified bearish momentum

On 4H charts, shooting stars appear at 1.7597 and 1.7576 levels, gravestone doji at 1.7612 and the hanging man at 1.7599 levels have occurred at peaks of rallies.

After a stern bullish rally, the price behavior has evidenced whipsaws pattern and a shooting star to conclude. Since Friday the trend has gone in the range between 1.7542 and 1.7466 levels.

Consequently, the bears managed to evidence price dips below 7SMAs, next strong support are seen at 1.7542 and 1.7529 range.

Expect more slumps on a decisive breach below this range.

While both leading (RSI and stochastic) indicators are suggestive of intensified bearish momentum.

The stochastic oscillator has been popping up with selling pressures with its %d crossover which is a bearish indication, while RSI has also been converging to the price dips right from the overbought zone and signals strength in its bearish sentiments.

On the other hand, MACD has been quite indecisive but bearish crossover to substantiate above-stated selling interests.

Currency Strength Index: FxWirePro's hourly GBP spot index has turned into -36 (which is mildly bearish), while hourly AUD spot index was at shy above 10 (neutral) at 11:15 GMT. For more details on the index, please refer below weblink:

http://www.fxwirepro.com/currencyindex.

Trading tips:

Well, contemplating above technical reasoning, on speculative grounds we advise tunnel spreads which are binary versions of the debit put spreads favoring bearish indications.

This strategy is likely to fetch leveraged yields than spot FX and certain yields keeping upper strikes at 1.7567 and lower strikes at 1.7505 levels.