FxWirePro: GBP/AUD rallies likely to drag but restrained below 38.2% Fibos and 21-EMAs - Deploy short hedges as consolidation phase struggles for momentum

On 4H charts, the rallies resume in the major downtrend, mild bullish swings are favored by momentum oscillators.

The bullish DMA crossover (7DMA crosses over 21DMA) that indicates current upswings likely to extend upto next stiff resistance at 1.6937 levels.

After a stern bullish rally, the price behavior has evidenced 3 white soldiers candlesticks pattern which is a bullish signal.

Since the current prices are well above DMAs and these bull swings are backed by robust volumes, we see stern buying sentiments in near run.

On the flip side, the bears managed to evidence price dips below 7EMAs, next strong support are seen at 1.6638 and 1.6244 range.

Major downtrend resume after failure swings below 38.2% fibonacci retracements, for now, every upswing is restrained below 7EMA. Expect more slumps upon a decisive breach below this range.

While both leading (RSI and stochastic) indicators on 4H charts are suggestive of intensified bullish momentum and bearish momentum on monthly terms.

The stochastic oscillator has been popping up with buying pressures with its %k crossover which is a bullish indication, while RSI has also been converging to the price spikes right from the oversold zone and signals strength in its buying sentiments on intraday charts and it is adverse on monthly terms.

On the other hand, MACD has been quite bullish but bearish on 4H and monthly charts respectively to substantiate above stated technical rationale.

Currency Strength Index: FxWirePro's hourly GBP spot index has turned into -9 (which is neutral), while hourly AUD spot index was also at -8 (neutral) at 10:50 GMT. For more details on the index, please refer below weblink:

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

Trading tips:

We recommend shorting rallies on hedging grounds and decide to initiate shorts in futures contracts with mid-month tenor.

Well, at spot reference: 1.6915, contemplating lingering bearish indications on longer term charts, with a view to arresting downside risks we recommend shorting mid-month month futures as the underlying spot FX likely to target southwards 1.6244 levels in the medium run.

Writers in a futures contract are expected to maintain margins in order to open and maintain a short futures position.

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