While both leading oscillators ( and stochastics) shows downward convergence that signals the intensified the selling momentum, more dips seem to be likely on the flurry of all these indications.
To substantiate this stance, shows crossover that indicates downtrend to prolong further.
Even though we see mild upswings for today, after testing supports at 1.8174 and 1.8141 areas, these deceptive rallies are not backed by both momentum and trend indicators, any breach below would re-intensify momentum on the daily terms.
While on intermediate trend, the consolidation phase seems to have been exhausted exactly at resistance as you could spot out sharp pattern pop up at the same level, both leading indicators have been indecisive on this timeframe despite earlier rallies but plummeted prices to end this week (refer weekly plotting).
The patterns, such as potential gravestone on weekly and failure swings at channel resistance signals overbought pressures and shrinking previous buying momentum in the consolidation phase of this pair. On the contrary, if at all bulls resume and manage to break-out channel resistance, the extension of the uptrend is most likely.
Trade tips: At spot reference: 1.8240, contemplating above technical reasoning, amid ongoing rallies but restrained below 1.8314 (near 2-days’ highs) and 1.8174 levels likely to act as the strong support, one can speculate this pair by tunnel spread binary options strategy using above-stated levels as two strikes. You rest assured with the certain but leveraged payoffs as long as underlying spot FX keeps dipping but remains above upper strikes on expiration.
Alternatively, one can stay long in contracts of near month tenors with a view to arresting further potential risks.
Currency Strength Index: FxWirePro's hourly GBP spot index has turned into 12 (which is neutral), while hourly AUD spot index was at shy above -9 (neutral) while articulating (at 10:15 GMT ).