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FxWirePro: GBP/CAD spikes above 7-DMA to inch towards 7-weeks’ highs but restrains below 21DMA, major downtrend still intact – Bid boundary binaries

In short-term trend, from last two weeks, the bulls have been showing some bounce backs that have gone above 7WMAs.

Despite these upswings, bulls are restrained at the resistance of 1.6869 and 21WMA levels, the failure swings below 1.6738 (21WMA) are likely to resume bearish rout.

The bearish pressure is again observed at 21WMA and 7EMAs despite ongoing rallies, bulls restrained at these levels as the robustness in both short and long-term bearish sentiment gets confirmation from RSI and MACD.

On both intraday and monthly RSI oscillator, we see consistent convergence to the price declines.

While slow stochastic has been a caution for aggressive bulls, we couldn’t foresee that there is still visible buying pressures on major trend.

Well, for the day, although you see strong rallies on an intraday graph, these rallies are dubious to sustain further, the major bear downtrend seems robust.

To substantiate, MACD signals the major downtrend likely to prolong further.

On a broader perspective, you could probably make out, as and when the pair approaches 7 and 21 EMA it has considerably tumbled in the recent past (refer monthly plotting), now more dips on cards as the bearish pressure is observed after the current prices restrained either below 7EMA or 21EMAs.

Well, having said that we wrap up with concluding note, short-term aggressive traders can speculate this pair via boundary binary options with higher strikes at 1.6673 and lower strikes at 1.6415, whereas long-term investors at current juncture contemplating above bearish indications, we advocate shorting futures contract of mid-month or near month expiries for downside risks towards 1.5964 and 1.5838or even upto 1.5724 levels cannot be ruled out upon breach of 1sttwo targets.

Writers in a futures contract are expected to maintain margins in order to open and maintain a short futures position.

Currency Strength Index: FxWirePro's hourly GBP spot index is at shy above 78 levels (which is bullish), while hourly CAD spot index is edging higher at -144 levels (extremely bearish) while articulating (at 11:21 GMT). For more details on the index, please refer below weblink:

http://www.fxwirepro.com/currencyindex.

FxWirePro launches Absolute Return Managed Program. For more details, visit: 

http://www.fxwirepro.com/invest

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