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FxWirePro: Ascending Channels Indicate GBP/AUD’s Intensified Uptrends, Wise To Upholds Long Hedge

As stated in our previous post, ascending channels are intensifying GBPAUD’s minor and major uptrends (refer both daily and monthly charts).

The interim bulls have resumed after bottoming out at 1.8546 levels and continued upswings above 7-DMAs with bullish crossover, bullish engulfing pattern is seen at 1.8979 level that has taken off the rallies above DMAs and EMAs (refer daily & weekly plotting).

In this upside travel, the pair has broken-out previous channel resistance which is observed as the key obstacles for more rallies. 

Both RSI and Stochastic curves show upward convergence to the prevailing rallies to indicate the buying momentum.

On a broader perspective, the intermediate trend also spikes through the rising channel (refer monthly chart), where bulls hold firm at the strong support at 1.8680 level and bounced back last month about 3.13%.

The current price spikes above EMAs as both leading oscillators signal bullish momentum & lagging indicators are indecisive on this timeframe as well.

Trade tips: One trading grounds, at spot reference: 1.9069 levels, we advocate executing one touch call option strategy with upper strikes at 1.92 levels, the strategy is likely to fetch leveraged yields as long as the underlying price keeps spiking towards upper strikes on the expiration.

Alternatively, on hedging grounds, contemplating above technical rationale, we advocated directional setup in our earlier post, initiating shorts in GBPAUD futures contracts of October’19 delivery and simultaneously, longs in futures of December’19 delivery. 

We wish to uphold long leg of December delivery for now.

Thereby, the foreign traders, who are exposed GBPAUD upside risks swings, can arrest their FX exposures. 

By Niranjan Patil
  • Market Data
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