GBPAUD prices have been sliding below 7DMAs constantly in the minor trend, whereas the major trend has been spiking through the .
While the intermediate trend spikes through the , bears resume at the channel resistance as you can see, Consequently, the current price slides below EMAs with crossover. We could foresee more slumps on the cards as both leading & lagging indicators signal weakness & momentum.
Trade tips: At spot reference: 1.8158 levels, contemplating above technical rationale, one can execute one-touch put options strategy. Such exotic option with lower strikes at 1.8094 levels likely to fetch exponential yields than spot moves.
Alternatively, on hedging grounds, we advocate short hedging strategy as we see significantly less upside for GBPAUD in the near term, while the major downtrend remains intact.
Hence, it is wise to initiate shorts in GBPAUD contracts of June’19 delivery as further downside risks are foreseen.
Currency Strength Index: FxWirePro’s hourly GBP spot index is inching towards -29 levels (which is mildly ), while hourly AUD spot index was at 46 ( ) while articulating (at 12:11 GMT ).