• FxWirePro: ascending channels plot GBP/AUD’s both minor and major trends – trading and hedging setup

    ソース: FxWire Pro - Technicals / 17 11 2019 11:13:46   America/New_York

    GBPAUD’s both minor and major trends are spiking through ascending channels (refer both daily and weekly charts).

    The interim bulls have resumed at around 21-DMA level, bullish engulfing pattern at 1.8979 level has taken off the rallies above DMAs and EMAs (refer daily & weekly plotting).

    In this upside travel, the pair has broken-out previous channel resistance which is observed as the key obstacles for more rallies. 

    Both RSI and Stochastic curves show upward convergence to the prevailing rallies to indicate the buying momentum.

    On a broader perspective, the intermediate trend also spikes through the rising channel (refer weekly chart), where bulls hold firm at the strong support at 1.8680 level and bounced back this week about 1.88%. Thereby, we could expect most likely bullish engulfing on this timeframe as well.

    The current price spikes above EMAs as both leading oscillators signal bullish momentum & lagging indicators are indecisive on this timeframe as well.

    Trade tips: One trading grounds, at spot reference: 1.8972 levels, we advocate executing one touch call option strategy with upper strikes at 1.9026 levels, the strategy is likely to fetch leveraged yields as long as the underlying price keeps spiking towards upper strikes on the expiration.

    Alternatively, on hedging grounds, contemplating above technical rationale, we advocated directional setup in our earlier post, initiating shorts in GBPAUD futures contracts of October’19 delivery and simultaneously, longs in futures of December’19 delivery. 

    We wish to uphold long leg of December delivery for now.

    Thereby, the foreign traders, who are exposed GBPAUD upside risks swings, can arrest their FX exposures.

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