Consolidation phase restrained below 38.2% fibos, while the intermediate trend of this pair has formed pattern.
pattern pops up at resistance of 153.841 levels to signal weakness and evidenced considerable slumps (refer weekly plotting).
For now, can bulls hold baseline is the dubious question, more rallies likely only upon decisive sustenance above this level and break-out above 152.121?
Both leading and lagging oscillators on both daily and weekly timeframes are in bears' favor.
We foresee on weekly terms seem more imminent than dragonfly as this is yet to receive the conformity from the momentum and trend indicators.
Contemplating above shot term technical rationale, you can place trades to construct tunnel binary options spreads using upper strikes at 151.460 and lower strikes at 149.7399 levels, these leveraged instruments are likely to fetch magnified effects in payoff structure as long as underlying spot FX keeps dipping but remain above lower strikes.
Alternatively, on hedging grounds, we advocate shorting contracts of mid-month tenors as the underlying spot FX likely to target southwards 145 levels in the medium run.
Writers in a contract are expected to maintain margins in order to open and maintain a short position.
Currency Strength Index: FxWirePro's hourly GBP spot index has turned into 31 (which is slightly ahead of average index and reports), while hourly JPY spot index was at shy above -121 ( ) while articulating (at 10:50 GMT ).