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GBP/CAD’s dragonfly doji may trap investors with deceptive rally

FX:GBPCAD   British Pound/Canadian Dollar
81 0 8
Ever since the pair test supports at 1.6629 (on 4H charts), upswings have spiked above DMAs with 7DMA crossing over 21DMA which signify the buying interests.

However, the major downtrend still seems intact despite the occurrence of dragonfly doji at 1.7233 levels (see monthly charts).

Please be noted that despite the attempts of prevailing upswings the current prices on monthly have well below EMAs.

On the contrary, the sideway swings are now spiking above on intraday charts which would be deemed as either bullish speculative opportunities in a very short term or better entry levels for fresh short build up in the long term.

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.

Thus, don't misinterpret the Doji formation and get deceived for medium term trades, instead, one can get benefitted from the boundary binary options as the leading indicators suggest contraction in ongoing buying momentum. Thus, it is good to buy boundary binary options with upper strikes at 1.6876 and lower strikes at 1.6827 for minimum targets of 50-60 pips on either sides, use 1H expiries to fetch desired results.
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