We continue our series of articles about vanilla options on easyMarkets trading platform.
H1 chart of GBP/CHF shows support (green) at 1.2443. Recently price has hit this level three times. Previously the same level was a resistance. Therefore, there is a good chance of successive reflection and growth. A signal to act in this case would be breaking the red line of the downward trend, which is currently at 1.2477. An alternative scenario is breaking the green line. It seems less likely, but if it did happen, we would expect market to drop to 1.231 marked with a brown line.
In both cases you can use the vanilla options offered by easyMarkets. In case of a rebound from the green line and breaking the red, you should open a long position on the call options. If is broken the green support you should buy options.