GBPCAD has formed shooting star followed by 3-black crows pattern that plummets price below 7DMA levels.
The pair has tested strong support at 1.7286 levels, more dips seem to be likely on bearish DMA crossover (refer daily chart).
Bears counter double bottom pattern with gravestone doji & shooting star, both leading & lagging indicators substantiate (refer weekly plotting).
Momentum oscillators indicate bearishly, RSI signals faded strength, fast stochastic curves deep in the oversold zone.
Trend indicators – DMAs, EMAs and MACD have shown clear bearish crossovers that indicate bearish swings to prolong further.
Support levels - 1.7286 and 1.7054 levels (may lows).
Resistance levels - 1.7394 (7-DMA) and 1.7439 (21-DMA).
Recommendation: Good to stay short on failure swings at 7DMA levels, SL: 1.7440, TP: 1.7286/1.7217 levels.
Currency Strength Index: FxWirePro's hourly GBP spot index is inching towards 86 levels (which is bullish), while CAD is flashing at 141 levels (which is bearish) while articulating at (11:50 GMT). For more details on the index, please refer below weblink:
http://www.fxwirepro.com/currencyindex
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