Cable’s intermediary upswings hampered by shooting star , major trend retrained below channel resistance – Tunnel spreads to speculate:
Shooting star pattern candle has occurred at 1.3495 back in mid-September and now at 1.3283 levels.
As a result, from last three days in a row, Cable’s bears have been reactivated ever since then.
Consequently, these bearish patterns have evidenced slumps below DMAs. And for now, the attempts of upswings are hampered by shooting star again. While both leading & lagging oscillators in bears' favor.
Both leading oscillators seem to be in bears’ favor, RSI constantly convergences downward to signal the strength in bearish swings. While stochastic curves have been slightly indecisive but certainly not in bulls favor.
On the other hand, lagging oscillators are also in sync with the same bearish stance offered by the leading indicators. MACD indicates the price slumps to prolong further, while 7DMA has crossed below 21DMA which is again a bearish signal.
On the broader perspectives, the major trend of this pair has been sliding below the sloping channel. While the consolidation phase turns into bearish again as the buying sentiments are unable to clear channel resistance and are restrained below 21-EMA.
Both leading, as well as lagging indicators on this timeframes, have been indecisive.
Well, the overall minor trend is weaker for sure, while better clarity is needed for the longs for major trend. Hence, it is wise to snap rallies at 7-DMAs to construct tunnel spreads on speculative grounds.
Deploy this strategy for the day which are binary versions of the debit put spreads in order to participate in the swings on either side. This strategy is likely to fetch leveraged yields than spot FX and certain yields keeping upper strikes at 1.3227 and lower strikes at 1.3117 levels.
While the FxWirePro currency strength index for the dollar has been extremely stronger (displays 121 highly bullish ), while GBP has been mildly bullish by flashing -55 for the day eyeing on some sort of cushion ahead of today’s UK’s earning’s index and unemployment data.
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