FxWirePro: GBP bears active as cable produces highly resilient spinning top followed by shooting star – Odds on cash-or-nothing binaries

Day highs were not able to sustain at 1.3145 levels and has rejected below 21DMA levels.

During the intraday sessions with bearish sentiments mounting as the pair has been attempting to break below supports at 1.3102 levels while leading indicators are signalling bearish momentum.

On 4H charts, we’ve spotted out a spinning top at 1.3139 levels with long upper shadow and long lower shadow and shooting star at 1.3135 levels.

Current prices have constantly been sliding below EMA, oscillating between sloping channel.

RSI: Currently, RSI (14) has also been consistently trending below 45 levels converging according to the price fluctuations as there is no clarity about the trend from this oscillator, on closing basis movement should be closely watched if it suggests downward signals.

Stochastic: It alarms bears trying to take over the rallies as the slow stochastic noises with the attempts of %D line cross over signifies intensified selling momentum.

Hence, we would foresee GBP on weaker side ahead of Fed’s monetary policy decision that is scheduled for today.

Trade tips: Buy cash-or-nothing options using boundary binaries for targets around 40-50 pips.

Upper strikes – 1.3130; lower strikes 40 pips below 1.3102.

The trading between these strikes would derive certain yields in this puzzling trend and more importantly these yields are exponential from spot FX.

For cash or nothing, these options would be exercised if the forward prices to remain between both strikes (i.e. 1.3130> Fwd price > 1.3102).