We continue our series of articles about vanilla options on EasyMarkets platform. Today we write about GBPUSD breaking out of consolidation
Since first days of July GBPUSD was in horizontal trend. Upper band of this trend is in 1.3440 area, it is marked on red. The lower band is green line connecting 3 pivot points. This line was just broken. Further decrease of the price is very probable. The closest support is at July 6th low – 1.2799. Breaking of it will confirm today’s signal.
Since drop of GBPUSD looks probable, the best strategy will be opening PUT option.