The pair has opened the week with a gap down at 1.9608 versus the previous close at 1.9693.

Thereby it has breached below supports at 1.9697 levels,

Bear have now exposed towards retesting of 38.2% retracement on monthly plotting, bears can load weights in short as selling momentum is confirmed by leading oscillators.

You can also observe there is an attempt of 7DMA crossing below 21DMA on daily charts which is a sell signal.

Moreover, the pair clears major supports decisively, currently dropped at resistance at 2.0152 levels.

No doubt sterling gained in previous 2 months but prior to which bears have evidenced the considerable slumps from last 6 months or so with the massive volumes conformity.

Please be noted that the current prices have slipped below DMAs again that signals ongoing declining rallies to drag further. So one can very well understand every price jumps would easily be wiped off by selling interests.

Well, on a broader perspective, if you observe the better clarity and substantial confirmation of bullish trend reversal after the evidence Gravestone Doji and hanging man patterns at around 2.1553 and 2.1607 levels on monthly charts that are highly bearish in nature as appeared at peaks of rallies.

RSI on both daily and monthly converges the robust price dips (daily - below 45 & monthly - below 52), while %D crossover on slow stochastic still maintains even below oversold trajectory on daily terms that is one more signal for bearish momentum to continue in the long run.

While no deviation from monthly MACD, the lagging indicator also confirms the downtrend continuation.

Hence, at spot ref: 1.9595 levels (while articulating) we advocate Pinocchio strategy using above/below binary puts with OTM strikes of 30-40 pips for intraday speculators in an ongoing bearish environment that are likely to fetch certain yields as we observe 1D IVs are spiking higher with sky rocketed pace ahead of significant risky event UK referendum.

If you deploy such leveraged products using ATM strikes that are far more sensitive since higher IV greatly increases their chances of expiring ITM.

So, we think no other strategy would be deemed as more efficient in such vigorous bearish environment as the pay-offs would be exponential on winning trade.