EURGBP has held stronger supports at 0.7708 levels last week and now heading towards resistance at 0.7842 at which (breakout point) the price behavior was similar in many times in the past.

But  after taking last week's support the pair has bounced above moving average curves (and lesser MA has crossed over greater MA) which is bullish indication, apparently the current prices have jumped well above both 21DMA and 7DMA.

In this process, it has formed ascending triangle with consistent higher bottoms (see yellow dotted lines).

While, a clear substantiation from other leading indicators which have shown buying sentiments as they converge to the price rallies but beyond 0.7842 would be keenly observed on a closing basis. Stochastic has reached overbought territory, even if it falls we could see strong supports at 0.7760 levels (which would likely be a slant side of the ascending triangle).

To boost up this bullish outlook with healthy volume build ups on rallies are also expected.

Please be noted that how delta risk reversal numbers are getting higher positive values gradually over long run (flashing at 1.40 for 1 year expiries) along with implied volatility show that hedgers are willing to pay higher prices for these sentiments as the spot FX is also growing aggressively in the money.

Trade Recommendation:

Contemplating above technical indications, we reckon ITM boundary binary options creates the best speculative opportunities, we have mixed bag of technical indications (price curve evidences the higher highs but these fluctuations remain between these levels )as the Stochs have overbought zone and price line has reached break out line of ascending triangle.

Well, as shown in the diagram, for now we expect range-bound markets with upper bracket 0.7842 and lower bracket at 0.7711. Lets visualize with spot FX 0.7826 a trader can choose an ATM binary put of USDJPY, the half an hour expiry, and two strike levels: the first strike level is lower than the current underlying value and the second strike level is higher than the current underlying value.

If the asset's settlement value is between these two strike levels at the expiration time, then the trade will close in-the-money on both binary positions.

But if the settlement value is below the lower strike or above the higher strike at expiration, then only one of the binary legs finishes in-the-money and the other leg is worthless, finishing out-of-the-money.