Although GBPAUD rallies have gone above 7WMAs on weekly plotting but remained well below 21WMA, for now, maximum upside potential is seen only upto stiff resistance of 1.6550 and 1.7049 levels.
As you could see on the monthly plotting, the recent attempts of upswings have been restrained and gone in non-directional from last six months, any failure swings below 7EMA likely to evidence slumps again; the current prices on this timeframe are hovering at around 23.6% levels, hence, major trend has been bias.
While both leading ( and ) indicators are indecisive but no traces of momentum at all.
The oscillator has been in halting oversold region since June 2016 and still been popping up with selling pressures on monthly plotting, the attempts of %K crossover are not convincing of bull swings that are prevalent while is slightly in bears’ favor.
is also in sync with this indication, this lagging indicator evidences the crossover and entering into the trajectory that indicates major downtrend to prolong further amid minor hiccups of bull swings.
Hence, we advocate initiating shorts in contracts with mid-month expiries, well, having said that we wrap up with concluding note, short-term bulls can speculate this pair whereas long-term investors at current juncture contemplating above indications, we advocate shorting contract to arrest the potential downside risks upto 1.6244, 1.6131 or even upto recent lows of 1.5905 levels cannot be ruled out upon breach of 1st two targets.
Writers in a contract are expected to maintain margins in order to open and maintain a short position.