A Glimpse of GBP/USD and Illustration Managing with an Option Spread
The following illustration is for educational purposes only as an example of managing a bearish view using an option calendar spread with currency options.
A weekly chart shows modest recovery from last month after the bearish push in Q1. Today, O.I. and Vol slightly down in relation to above D-Levels analysis. Note that the market could push higher moving slightly out from overbought territory.
Cable has pushed bullish in overbought territory having moved near OP resistance. Possible pullback down from this level before pushing further. Gauge secondary indicators.
Intraday view shows where COP resistance was reached with a drop below the MACDP predictor and slight move bearish. Possible confirmation given the wash n rinse above but weakness with close below.
First pic of 2 on calendar managing risk per spread well above the intraday MACDP and OP 1.56 where trend would confirm bullish in line with the daily.
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