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FxWirePro: Buzzin bears in GBP/CAD upon shooting stars, head and shoulder patterns – Glance at risk/reward trades and short hedge

GBPCAD minor trend has been sliding through falling wedge pattern, bears have managed to breach below wedge baseline (refer 4H chart).

In addition, frequent occurrences of shooting stars nudge prices constantly below DMAs. For now, more slumps likely amid minor abrupt rallies upon bearish DMA and MACD crossovers and intensified bearish momentum.

Both RSI and Stochastic curves show downward convergence to the prevailing price dips to signal selling momentum.

While the major downtrend is intensified on Head & shoulder patterns on monthly terms, while both leading and lagging indicators are in tandem with the price slumps.

Trade tips: at spot reference: 1.6505 levels, it is wise to snap deceptive abrupt rallies and deploy short futures contracts of mid-month tenors for the targets up to 1.6227 levels, but maintain strict loss 1,6512 levels, the same positions can also be initiated on hedging grounds for arresting further downside risks.

Currency Strength Index: FxWirePro's hourly CAD spot index is flashing at -81 levels (which is highly bearish), hourly USD spot index was at 72 (bullish) while articulating at (13:05 GMT). 

For more details on the index, please refer below weblink: http://www.fxwirepro.com/currencyindex

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