FxWirePro: GBP/USD hammer at rising channel support cushions slumps, shooting star counters Consolidation phase in intermediate trend intact

Chart and candlestick pattern formed - Rising channel pattern (on weekly plotting) and hammer pattern candlesticks with bullish SMA crossover (on weekly & monthly plotting).

Well, contemplating and synthesizing these chart and candle patterns on both timeframes, coupled with the fact that the intermediate trend and major trend has gone into the consolidation phase, we foresee most likely price spikes further.

You could see as and when the price touches channel support, sharp spikes are seen upon hammer pattern candlesticks (refer weekly plotting).

For now, more upside potential is foreseen as the current prices testing support at 7EMAs.

On the flipside, the major stiff resistances are seen at 1.3652 levels. But both the leading oscillators have been constantly converging upwards on monthly terms to signal strength in rallies.

Trade tips: On an intraday speculative basis, we see the price to remain within the range between 1.3372 and 1.3333 levels. Hence, we advocate buying boundary binaries these as upper and lower strikes.

The trading between these strikes likely to derive certain yields in this perplexed trend in the near-term, more importantly, these yields are exponential from spot movements.

For cash or nothing, these options would be exercised if the forward prices to remain between both strikes (i.e. 1.3372 > Fwd price > 1.3333).

Currency Strength Index: FxWirePro's hourly GBP spot index is inching towards -76 levels (which is bearish) ahead of UK’s CPI prints. Hourly USD spot index was at shy above -20 (neutral) while articulating (at 06:16 GMT). For more details on the index, please refer below weblink:

http://www.fxwirepro.com/currencyindex

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