Day highs were not able to sustain and has rejected resistance at 1.4385 levels.

During the intraday sessions with bearish sentiments mounting the pair has been able to break below supports at 1.4343.

Cable has been closely observed as has reached a supply zone at 1.4385 and there would either be range bounded swings where upper band is 1.4385 which is maintaining as a resistance point while 1.4229 on south.

RSI: Currently, RSI (14) trending below 54 levels converging according to the price fluctuations as there is no clarity about the trend form this oscillator, on closing basis movement should be closely watched if it suggests downward signals.

Stochastic: It alarms bears trying to take over the rallies as the slow stochastic noises with the attempts of %D line cross over above overbought levels (current %D line flashes at 83.5125).

Hence, we would foresee GBP on weaker side ahead of this week's BoE's monetary policy decision and unemployment rate in the U.K.

Trade tips: As a result of above technical and fundamental incidents we see pair likely to head towards 1.4229 levels, but for intraday terms, we consider both stochastic and RSI oscillators and as they pop up with overbought pressures so far, so smart way to approach this pair is to deploy the option tunnel using ATM puts is structured as a binary version of a conventional put spread, i.e. long delta puts with higher strikes while writing the lower strikes for above mentioned targets on either side.

Therefore an In-The-Money tunnel would be formed of an In-the-money -0.75 delta put below the current exchange rate less an Out-Of-The-Money put above the exchange rate. The delta of -0.55 on combined position with slightly negative theta is preferred on this execution.

Upper strike: 1.4385; Lower strike: 1.4229.