The GBP is at an ideal point in its movement today, setting the stage for a strong downtrend. After bouncing off a larger-scale resistance line, now a clear bearish trend has appeared and is set to continue for some days to come. Without a justified support line until 1.5615, the currency has a long way to go down before any concern need be raised towards a pivot or retraction. Traders are advised to look for PUT options riding the trend for between 30 minutes to 1 hour.
Breaking from the final stretch of its retraction, the pair has hit a resistance line at 175.12 and is beginning to show a bearish sentiment. After such a strong bullish movement last week, we can only expect to see further continuation of trend strength in its opposite. This trend is in its beginning stages, and has a large amount of room to maneuver downwards towards its next line of support. Traders are advised to look for strong downtrends for PUT options, large movements especially ranging from options for 10-15 minutes.
While scale wise the volume of movement on the GBP/CAD is not as large as other GBP pairs, the direction is just as strong. Taking into account the CAD itself is set to move in a bullish direction during the week, we can confidently see the sentiment on this pair to be strongly bearish. Movements of larger amounts will take place mainly in the evening but will be more generous than most other GBP pairs. Traders are advised to use this pair during the US market hours and trade PUT for between 15-30 minutes.