FxWirePro: Shooting star, hanging man and leading oscillator alarm early signals of intermediate corrections in GBP/CAD until 2.0434

It is projected as swings may head towards an intermediate correction since bearish candle patterns occurred on both daily and weekly charts. Shooting star and hanging man at peaks formed at 2.0499 and 2.0522 levels respectively.

Divergence of leading oscillator (RSI) is traced out when prices were rallying, this would be also treated as the price is attempting to take halt and correct for some time.

We've also seen %D line crossover on slow stochastic above 80 levels which is overbought region. We look ahead at price to test the support at 2.0420 (this week's lows) if it has to bounce back.

However, intraday trend has been quite upper bias as the leading indicators suggest healthy rallies, and these rallies are under control of bulls. Thus, it is good to buy binary at the money put options on rallies for targets of 25-30 pips.

Fundamental factor that can prop up our above call: May's weaker Services PMI reading seems to be a blip now.