FxWirePro: GBP/USD major bear trend to prolong, hovers support at 1.3213 – Boundary binaries likely to derive certain yields

Current prices have slid below DMA but testing supports @ 1.3213, breaking below brings in more shorting opportunities.

During the early Asian sessions, bearish sentiments are mounting as the pair has been able to display 7DMA crossing below 21DMA on an intraday chart.

This month, the Cable has been able to drag the last month’s slumps to the multi-year lows with massive volumes which is in conformity to the robust major bearish trend (see monthly charts).

RSI: Currently, RSI (14) has been converging downwards to the prevailing slumps on both intraday as well as monthly graphs, thus we still see strength bearish swings.

Stochastic: It alarms bulls attempting to take over the rallies as the slow stochastic noises with the attempts of %K line cross over at oversold territory but hasn’t been convincing on both monthly as well as intraday charts (current %D line flashes at 83.5125).

While same is the case on MACD, that lies below zero levels popping up with bearish crossover. This is a signal of long-term continuation amid minor upswings.

Hence, we would still foresee GBP on weaker side as BoE's rate cut expectations in its next monetary policy decision and ahead of the U.K’s CPI flashes.

Trade tips: As a result of above technical reasoning we see boundary binary options are best suitable on speculative grounds for certain yields considering upper strikes at 1.3231 (7DMA) and lower strikes at 1.3216, choose extremely narrowed expiry. Returns are certain as long as the pair oscillates between these two strikes. This is just for an intraday trading perspective, but in the long run, this is certainly not yet an ideal time for fresh longs.