FxWirePro: Technical glimpse on GBP/USD; long binary puts on rallies for 30-35 pips

On EOD charts a candle with long bearish real body at 1.5456 levels occurred to breach channel support. We reckon the short and medium trends are tight controls of tug of war between bulls and bears. This has created a spectacular opportunities for speculators.

On breach of 1^st channel line support (at 1.5534) the distance of slumps = 1.71%.

On 2^nd channel line support (at 1.5267) = almost 4.01% recovery.

On breach of 2^nd channel line support (at 1.5725) = slumps until 1.5526 or 1.3%.

Now the time for 3^rd channel as the pair has breached on closing basis at 1.5456 levels, so would be the trade bet is million dollar puzzle..? another channel line distance recovery for bears, maybe about more than 1.30% slumps..?

To substantiate this rationale, oscillators are still moving in convergence with the falling prices. RSI at 39.3658 while %D line crossover (%D line at 10.2310 & %K line at 4.9244) on slow stochastic.

Our main take away from the June 16-17 FOMC meeting was that the hurdle for a lift-off in rates is quite low, but the pace will be very gradual. We expect the discussion to be centered on lift-off preparations; including both the technical aspects and communications ahead of the first rate hike. Furthermore, San Francisco Fed President Williams (voting) will be speaking later today.

Trade calls: GBP/USD

With a view of further slumps to persist short term bearish trend, we recommend buying at-the-money binary puts on rallies for 30-35 pips.