FxWirePro: GBP/CAD fails at 200-DMA, breaks 20-DMA at 1.6487, good to go short on rallies

• GBP/CAD breaks below 20-DMA support at 1.6487, intraday bias bearish.
   
• The pair is edging lower after failing to break past 200-DMA resistance.
   
• Technical studies have turned bearish, RSI and Stochs are biased lower, RSI has fallen below 50 levels.
   
• MACD is showing a bearish crossover on signal line and ADX is supporting trend lower.
   
• Price action has dipped into daily cloud and next bear target lies at 50-DMA at 1.6364.
   
• Violation at 50-DMA could see further downside. Bearish invalidation seen on close above 5-DMA at 1.6560.

Support levels - 1.6364 (50-DMA), 1.6313 (23.6% Fib retracement of 0.7853 to 1.5837 fall), 1.6237 (July 21 low)

Resistance levels - 1.6487 (20-DMA), 1.6560 (5-DMA), 1.6665 (200-DMA)

Recommendation: Good to go short on rallies around 1.6490, SL: 0.6560, TP: 1.64/ 1.6365/ 1.6315.

FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at -50.2877 (Neutral), while Hourly CAD Spot Index was at 88.4906 (Bullish) at 1015 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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