FxWirePro: EUR/GBP down streak intensifies with shooting star – prefer BPS on dubious downtrend

See the daily charts, the price slid from market tops 2.2370, while RSI and stochastic oscillators are converging downwards with price slumps. On weekly chart a serious gravestone doji has occurred with huge volumes which is weakness but cannot conclude this as a bearish signal as supportive signal should be generated from leading oscillators.

On speculation grounds, (1%) out of the money 0.48 delta call options were recommended, simultaneously shorts on (-1%) in the money call were also recommended. Initially OTM longs were working until tops and thereafter ITM shorts have been showing their effects, No harm even if the longs are not squared off considering abundant time left for expiry because of lengthier expiry on longs and shorter expiry on short side.

Since this spread is an intermediate strategy that can be profitable for GBPAUD that is either range bound or falling. The main objective is to defend the downside of a naked call by buying a higher strike call to insure the one you sold.

This spread strategy is to be employed because we think that the price of GBPAUD should consolidate moderately in the near term, as we anticipated a short term downswings the premiums collected on In-The-Money calls can be pocketed in.