Market Review: GBPUSD / EURUSD Weekly Outlook – May 13th – 17th

GBPUSD

For the GBPUSD, an ascending channel has formed as shown below.

The play for this asset is as follows:

a)      If there is a break of the lower trend line, the play would be to purchase a PUT contract at an upward retracement to lower trend line.

b)      If the GBPUSD bounces upwards from the lower trend line within the channel, the play would be to purchase a CALL option contract using an expiry time of at least one week.

This is in the context of the asset resuming a downtrend after a 50% retracement from the previous downtrend. Therefore, the bias is decidedly bearish and we will more likely see a break of the lower trend line in the channel. However, the break must first be confirmed by the candle closing below the lower trend line.

Market Review: GBPUSD Weekly Outlook – MAY 13th – 17th

Market Review: GBPUSD Weekly Outlook – MAY 13th – 17th

 

EURUSD

The short term bias for the EURUSD is neutral. For traders who want to hold positions for the week, (i.e. with a one week expiry), the EURUSD has just completed a head and shoulders pattern at 1.2970. The neckline drawn across this level would serve as a support, and only when this support is broken would a decline be seen towards 1.2784, the next support level on the daily chart.

The binary options play for this asset is to wait for a break of the trend line, and then trade as follows:

a)      PUT trade at break of 1.2970 with an expiry of one week.

b)      TOUCH trade using a price target of between 1.2970 and 1.2780, with an expiry of up to 2 weeks.

 

Market Review: EURUSD Weekly Outlook – MAY 13th – 17th

Market Review: EURUSD Weekly Outlook – MAY 13th – 17th

Feature Broker: EZTrader

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