FxWirePro: GBP/AUD bears keep check on EMAs in sloping channel, leverage shorts via one touch binaries as shooting star pops up at stiff resistance

GBPAUD rallies have consistently been restrained below EMAs on weekly plotting, dipping constantly through sloping channel, please observe every upswing is restrained below 21 & 7EMA.

On 2H charts, shooting star appears at resistance & evidences price dips below 7SMAs, more slumps likely on the breach below 21SMA.

As you could see, last week’s upswings have now gone in a narrow range, any rejection below channel resistance likely to evidence slumps again.

While both leading (RSI and stochastic) indicators are suggestive bearish momentum.

The stochastic oscillator is nearing oversold trajectory and still been popping up with selling pressures on weekly terms, the %D crossover is also convincing of bear swings on intraday terms while RSI is also slightly in bears’ favor on this timeframe.

On the other hand, MACD has been indecisive but remained below zero which is bearish trajectory.

At this juncture, we see speculative opportunities in one touch binary option, this option trade is useful for intraday traders who believe the price of an underlying spot FX would undergo bearish pressures and one wants to add on magnifying effects to the profitability.

Well, at spot ref: 1.6323, a trader can initiate a one touch binary put. Some traders view this type of exotic option as being like a naked put position since the trader stands to benefit on a calculated price in the bearish scenario.