FxWirePro: GBP/AUD Hammer & Dragonfly Doji Patterns Intensify Buying Sentiments – Trading & Hedging Setup
GBP crosses have gained support from progress in trade talks with the EU in July, evidently, GBPAUD has been spiking considerably from the last couple days. The pair has continued yesterday’s marginal gains from 1.8080 to the current 1.8116 levels.
Technically, the hammer pattern has occurred at 1.7735 levels, ever since then, the minor trend has managed to take-off rallies above DMAs. While bulls shrug-off bearish patterns in between the bullish journey towards 1.8116 as both leading & lagging indicators are also in line with the prevailing upswings (refer 4H chart).
Bears, in intermediate trend, halt at the strong support of 1.7650 levels, that’s where dragonfly doji pattern pops-up at 1.7997 to resume upswings (refer weekly plotting), but both leading & lagging oscillators are still indecisive, interim buying sentiments are possible though.
Trade tips: At spot reference: 133.876 levels (while articulating), contemplating above technical rationale, one can execute one touch call options using upper strikes at 134.756 levels. Such exotic option will participate in upside movement and fetch leveraged yields as compared to spot.
Alternatively, foreseeing puzzling swings we recommend directional positions also on hedging grounds, hence, initiate longs in GBPAUD futures of Aug’20 delivery. Simultaneously, activate shorts of September tenors. Thereby, one can ensure directional positions amid macroeconomic turmoil and 2nd wave of coronavirus outbreak.