After breaking recent supports at 1.4343 and 1.4229, it has broken 1.4155 yesterday on a closing basis and bears are taking over these loses further.
In between this process, 21DMA has just crossed over 7DMA on daily time frame which is a sell signal.
RSI: Currently, RSI (14) trending near 35.5460 levels converging downwards to these price dips to signify the intensifying selling momentum, same has been the case on monthly charts.
Stochastic: This leading oscillator is approaching oversold territory with %D crossover to signal bears are in absolute control (current %D line flashes at 20.8846).
Hence, we would foresee GBP on weaker side on the back of today's inflation report hearing and Brexit fears which would send the significant messages prior to MPC member's speech later in the day. We think the cconcerns over the possibility of a Brexit pummelled the pound on Monday and as a result of above technical reasoning we could foresee pair to slip below 1.40 levels shortly.
Thus, the trading recommendation would be good to stay short by buying binary puts on every rally for targets at 30-40 pips.
In between this process, 21DMA has just crossed over 7DMA on daily time frame which is a sell signal.
RSI: Currently, RSI (14) trending near 35.5460 levels converging downwards to these price dips to signify the intensifying selling momentum, same has been the case on monthly charts.
Stochastic: This leading oscillator is approaching oversold territory with %D crossover to signal bears are in absolute control (current %D line flashes at 20.8846).
Hence, we would foresee GBP on weaker side on the back of today's inflation report hearing and Brexit fears which would send the significant messages prior to MPC member's speech later in the day. We think the cconcerns over the possibility of a Brexit pummelled the pound on Monday and as a result of above technical reasoning we could foresee pair to slip below 1.40 levels shortly.
Thus, the trading recommendation would be good to stay short by buying binary puts on every rally for targets at 30-40 pips.
