Technical updates:The currency cross has taken support and began bouncing back exactly at 100% retracement soon after breaching the lower channel line at 1.52 levels.As shown in the daily graph the pair had breached lower channel line at 1.553 levels and made cent percent retracement up 1.52 levels started showing strength of reversal.To fortify this view oscillators signal the positive convergence to the price curve and formation of bullish engulfing candle to confirm the trend reversal.RSI (14) is trending at 50.2511 levels.Slow stochastic with %D line at 20.3803 & %K line at 30.0940 levels shows crossover below 20, which is interpreted as an oversold scene.Currency Options Watch:As a sense of bull trend is anticipated, we would like to advocate At-The-Money calls at this stage.Delta of ATM calls of GBP/USD that represents the option’s equivalent position in the underlying market flashes at 50071.58 for 100,000 units which means 0.5.With a simple logic, positive delta for option holder indicates desirable direction of underlying currency fluctuation.Hence at this juncture of currency momentum, ATM calls of this pair for hedgers looks appropriate.
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