Current price pattern whipsaws on 21DMA & at pivot levels of 156.853.

We don’t think the prevailing price bounces sustain major resistance to reach even major resistance at 161.702 and 162.702 levels.

Earlier also bears resume after rejecting at major resistances at 162.702 & at 161.702, as a result, the current price slid well below 7DMA and simultaneously the intermediate buying momentum seems disappeared.

RSI & Stochastic oscillators on daily charts have been indecisive but at the moment mildly in favour of bulls.

MACD has remained below zero level which is a bearish territory.

On monthly plotting, the downtrend has already shown more than 50% Fibonacci retracements, so any minor spikes should not deemed as a reversals, instead use those rallies to deploy long term shorts.

Leading oscillators (RSI & stochastic) have been convincingly converging to the major downtrend.

Massive volumes build ups are in conformity to this declining trend.

To substantiate this major downtrend, MACD's bearish crossover, 21EMA crossover 7EMA and since the current prices on monthly charts have slid below EMAs which is still sell signals.

Hence, we continue to maintain our bearish stances as the ongoing downtrend to prevail further ahead of today’s economic numbers such as BoE’s inflation report, PPI and preliminary GDP QoQ.

Trade Tips:

Contemplating above technical reasoning, we could foresee bear swings may resume at any point in time although attempts of upswings above 7DMA we could also see stiff resistance at 21DMA.

Hence, at spot ref: 157.930 double touch options are useful for traders who believe the price of an underlying asset will undergo a large price movement, but who are unsure of the direction.

Some traders view this type of exotic option as being like a straddle position, since the trader stands to benefit on a calculated price movement up or down in both scenarios.

A trader can use a double one-touch option with barriers at 156.853 and 158.486 to capitalize on this outlook.

In this case, the trader stands to make a profit if the rate moves beyond either of these levels before expiry, and he/she stands to lose the premium if the rate remains within these barriers.

This will end up putting the trader in a position to gain profit from a boost in the asset price or even a decrease.

Usually, it’s wise to manage both sides of a motion when the asset price is shifting around in a changeable manner.