FxWirePro: History repeats in Cable short term and major downtrend – Double touch barriers for speculation as spot stuck between 7 and 21-DMAs

On daily charts, the bears manage to slide below 21DMA after the rejection of stiff resistance of 1.2742 levels; the current prices remain well below 21DMAs despite the spikes from last two days. Today again bears resume at 21DMA with confirmation from momentum indicators for selling sentiments.

History repeated at 1.2742, you could also observe bearish DMA crossover as the current prices remain below 21DMAs for now, expect more slumps on bearish DMA crossover.

The price dips may extend up to next strong support of 1.2103 on healthy bearish momentum as we could notice bearish convergence on leading oscillators.

On a broader perspective, both leading & lagging indicators confirm the major bearish trend, the current price on this timeframe as well is consistently below 7EMAs heading for a retest of multi-year lows.

The downswings have constantly been sliding testing resistance at EMAs, with confirmation from both trend and momentum indicators (refer monthly charts).

RSI’s convergence below oversold territory doesn’t signal the strength in the bullish trend.

Stochastic curves on both time frames have been indecisive to signal either bullish or bearish momentum.

MACD is not deviating from the bearish stance, signals the downtrend to prolong further with its bearish crossover.

Trade tips:

At this juncture, we see speculative opportunities in double touch binary options, this option trade is useful for intraday traders who believe the price of an underlying spot FX would undergo a large price movement, but who are unsure of the direction as you could see spot fx is stuck between 7 and 21DMA.

At spot ref: 1.2479, a trader can use a double touch option with barriers at 1.2511 (21DMA) and 1.2459 (7DMA) or 1.2394 (lower BB), thereby, around 50 pips are reasonable to speculate this pair on either side.