Shooting star, Gravestone doji and bearish engulfing patterns have occurred up at peaks of rallies at 1.8408, 1.8412 and 1.8167 respectively to signal weakness in this pair. Consequently, downswings slide below 7DMAs (refer daily charts).
For now, more slumps seem to be on cards as DMA and MACD rend indicators signal bearish crossovers, while both leading oscillators signal intensified selling momentum.
As you could probably observe on weekly plotting, the bull swings seem to have been totally exhausted at channel resistance. Ever since then, steep slumps have been evidenced.
As a result, the current prices are still well below 7DMAs despite ongoing rallies.
For today, the bullish rally is not convincingly supported by both leading and lagging indicators, thus, trend and momentum in this bullish sentiment has still been dubious. The lingering bears are all set to break below strong support zones 1.7930 levels.
Any decisive break below these support zones with bearish DMA & MACD crossover indicates the extension of further price slumps as both the leading & lagging indicators to favor selling interests since they constantly converge downwards to the price dips.
Trade tips: Contemplating above technical reasoning, amid ongoing rallies but restrained below 7DMA, at spot reference: 1.8052, one can speculate this pair by constructing tunnel spread binary options with upper strikes at 1.8102 (i.e. 7DMA) and lower strikes at 1.7930 levels.
Currency Strength Index: FxWirePro's hourly GBP spot index has turned into -29 (which is mildly bearish), while hourly AUD spot index was at shy above -61 (bearish) while articulating (at 12:42 GMT). For more details on the index, please refer below weblink:
http://www.fxwirepro.com/currencyindex
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