GBPJPY has occurred hammer pattern at 127.153 levels. Ever since then, mild buying sentiments are observed.
The minor trend has constantly been sliding below DMAsso far, but for now, the interim bulls attempt to bounce back with the hammer pattern that takes above 7DMAs. We could foresee more rallies on the cards upon bullish MACD crossovers and intensified buying momentum.
21-DMA – 130.395
7-DMA – 128.457
RSI and fast stochastic curves show upward convergence to the prevailing price rallies to indicate buying strength in the ongoing minor uptrend but faded at 45 levels.
On a broader perspective, the consolidation phase fails at 61.8% Fibonacci levels (refer monthly chart), bears extend through inverse saucer in the minor trend, with the bearish engulfing pattern at 146.754 and 136.767 levels with the intensified selling momentum.
Thereby, the major downtrend is back in action as downswings, on this timeframe, are on the verge of retracing 88.6% levels.
Trade tips: At spot reference: 129.010 levels, contemplating above technical rationale, one can execute one-touch call options strategy. Such exotic option with upper strikes at 130.396 levels favoring prevailing buying sentiments and fetch leveraged yields as compared to spot.
Alternatively, amid Brexit decision shorting futures of mid-month tenors are advocated with a view of arresting further potential slumps. Writers in a futures contract are expected to maintain margins in order to open and maintain a short futures position.
The minor trend has constantly been sliding below DMAsso far, but for now, the interim bulls attempt to bounce back with the hammer pattern that takes above 7DMAs. We could foresee more rallies on the cards upon bullish MACD crossovers and intensified buying momentum.
21-DMA – 130.395
7-DMA – 128.457
RSI and fast stochastic curves show upward convergence to the prevailing price rallies to indicate buying strength in the ongoing minor uptrend but faded at 45 levels.
On a broader perspective, the consolidation phase fails at 61.8% Fibonacci levels (refer monthly chart), bears extend through inverse saucer in the minor trend, with the bearish engulfing pattern at 146.754 and 136.767 levels with the intensified selling momentum.
Thereby, the major downtrend is back in action as downswings, on this timeframe, are on the verge of retracing 88.6% levels.
Trade tips: At spot reference: 129.010 levels, contemplating above technical rationale, one can execute one-touch call options strategy. Such exotic option with upper strikes at 130.396 levels favoring prevailing buying sentiments and fetch leveraged yields as compared to spot.
Alternatively, amid Brexit decision shorting futures of mid-month tenors are advocated with a view of arresting further potential slumps. Writers in a futures contract are expected to maintain margins in order to open and maintain a short futures position.