On daily plotting of EURGBP, So far the minor trend has been oscillating between sloping channels.
But the bulls have managed to break-out channel resistance, consequently, the current trend spikes above DMAs with bullish crossovers and goes sideways. On the contrary, Shooting stars & Gravestone doji patterns occurs at 0.8921 and 0.8926 levels respectively.
These candlestick patterns are bearish in nature signal weakness, for now, the trend seems slightly bearish bias.
On broader perspectives, bearish engulfing and shooting star patterns have occurred at peaks of the major uptrend, as a result, these bearish patterns hamper the momentum in previous rallies.
Consequently, the current trend has attempted to slide below 7EMAs, but these bearish sentiments are not backed by both leading oscillators but lagging indicators are indecisive.
For now, the stiff resistance is observed at 0.8973 and the strong supports are at 0.8685 levels. While in the medium term, a range between 0.8250 and 0.9032 is expected.
The prices are consolidating at around the higher-point of the above-stated range (the current 0.8816) even though the minor trend studies remain a little “overbought”, warning the upside is limited in the long term. We are watching the cross in conjunction with the key levels in the legs highlighted above.
Leading oscillators have been little indecisive, even though RSI shows gaining strength in monthly terms.
Contemplating above shot term technical rationale, at spot reference: 0.8923 levels, you can place trades to construct boundary binary options spreads using upper strikes at 0.8953 and lower strikes at 0.8895 levels, these leveraged instruments are likely to fetch magnified effects in payoff structure as long as underlying spot FX remains between these two strikes on expiration.
Currency Strength Index: FxWirePro's hourly EUR spot index has shown 40 (which is bullish ahead of ECB’s monetary policy), while hourly GBP spot index was at 53 (bullish) while articulating at 05:56 GMT. For more details on the index, please refer below weblink:
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