FxWirePro: GBP/CAD bears resume after snubbing at resistances – Stay short as price, volume and leading indicators conform to major downtrend

Ever since the pair approaches pivot levels of 1.7039 it either bounces back or slid massively, now acting that level as resistance as bears resumed in the major downtrend, on the flip side the pair also tested 7DMA as supports as well.

However, we reiterate the major downtrend still seems intact despite the occurrence of dragonfly doji at 1.7233 levels (see monthly charts), you can observe this as the current prices on monthly have well below EMAs.

Please be noted that despite the attempts of prevailing upswings are hindered at 1.7039 as the momentum is shrunk away.

This downtrend seems intact as the both leading and lagging indicators converge the ongoing slumps.

Clear convergence of leading oscillator (RSI) can easily be figured out when the prices were declining, so the formation of dragonfly doji would mean that the bears have just taken a brief halt and likely to resume the major trend at any time.

The attempt of %D line crossover on slow stochastic at 36 levels has been a caution for aggressive bulls, there is still visible selling pressure.

You can also easily spot out declining prices along with bearish crossover on MACD and mammoth volumes formation which is a clear indication of the robust downtrend.

But for now, one can get benefitted from the boundary binary options as the leading indicators suggest contraction in ongoing buying momentum and simultaneously bulls testing support at 7DMA. Thus, it is good to buy boundary binary options with upper strikes at 1.7039 and lower strikes at 1.6994 for minimum targets of 30-40 pips on either side, use 4H expiries to fetch desired results.