Cable stuck between pivotal point at 7DMA, 1.2078 and 1.1971
Cable stuck between pivotal point at 7DMA, 1.2078 and 1.1971, major downtrend to see deep tunnels – Stay short via mid-month futures:
Despite today’s vigorous upswings bulls struggle to spike above 7DMA & show the sustenance at that level.
The current price consistently remains below 7DMA, a break below 1.2078 and 1.1971 to bring in a more bearish rout (refer daily chart). The current price drops have been sliding through the sloping channel.
Both leading & lagging indicators on monthly terms are in conformity to the major bearish trend, current well below EMAs heading for the retest of multi-year lows.
The downswings have constantly been sliding testing resistance at EMAs, with confirmation from both trend and momentum indicators (refer monthly charts).
RSI’s downward convergence below 42 levels on dailies and below oversold territory signal the strength in the bearish trend.
Stochastic curves on both time frames have been decisive to signal the bearish momentum.
MACD is not deviating from this bearish stance, signals the downtrend to prolong further with its bearish crossover.
Hence, we could now foresee more bearish environment and advocate never buck GBPUSD downtrend as the bears likely to breaks major supports, and we’re just less than 200 pips away from multi-year lows.
Trade tips:
At spot reference: 1.2131, as we are just 181 pips away from the recent lows of 1.1950, contemplating lingering bearish indications at this juncture, on both hedging and speculative grounds we recommend shorting mid-month month futures as the underlying spot FX likely to target towards 1.1950 levels.
Writers in a futures contract are expected to maintain margins in order to open and maintain a short futures position.
These margin requirements are determined by the exchanges and would usually be ranging from 2 to 10% of the full value of the futures contract.
Despite today’s vigorous upswings bulls struggle to spike above 7DMA & show the sustenance at that level.
The current price consistently remains below 7DMA, a break below 1.2078 and 1.1971 to bring in a more bearish rout (refer daily chart). The current price drops have been sliding through the sloping channel.
Both leading & lagging indicators on monthly terms are in conformity to the major bearish trend, current well below EMAs heading for the retest of multi-year lows.
The downswings have constantly been sliding testing resistance at EMAs, with confirmation from both trend and momentum indicators (refer monthly charts).
RSI’s downward convergence below 42 levels on dailies and below oversold territory signal the strength in the bearish trend.
Stochastic curves on both time frames have been decisive to signal the bearish momentum.
MACD is not deviating from this bearish stance, signals the downtrend to prolong further with its bearish crossover.
Hence, we could now foresee more bearish environment and advocate never buck GBPUSD downtrend as the bears likely to breaks major supports, and we’re just less than 200 pips away from multi-year lows.
Trade tips:
At spot reference: 1.2131, as we are just 181 pips away from the recent lows of 1.1950, contemplating lingering bearish indications at this juncture, on both hedging and speculative grounds we recommend shorting mid-month month futures as the underlying spot FX likely to target towards 1.1950 levels.
Writers in a futures contract are expected to maintain margins in order to open and maintain a short futures position.
These margin requirements are determined by the exchanges and would usually be ranging from 2 to 10% of the full value of the futures contract.
