FxWirePro: GBP/CAD breaks 200-DMA, hits 4-month high at 1.70, bias higher, stay long

• GBP/CAD has shown a decisive break at 200-DMA and hit 4-month highs at 1.70.
   
• CAD weakness post Bank of Canada (BoC) policy meet overnight propelled the pair higher.
   
• BoC left unchanged the repo rate at 1.00% and said that it will remain ‘cautious’ regarding further tightening.
   
• CAD dived across the board as market rules out further BOC rate hikes in Dec/Jan.
   
• The pair has currently paused upside at 1.70 handle, pared some gains to currently hover around 1.6967.
   
• Technical studies are bullish and breakout above 200-DMA reinforces scope for further upside.
   
• Next bull target lies at 1.7083 (61.8% Fib retracement of 1.7853 to 1.5837 fall).
   
• 50% Fib at 1.6845 offers immediate support, break below could see retrace upto 200-DMA. Bullish invalidation likely on break below 200-DMA.

Call update: Our previous call (http://www.econotimes.com/FxWirePro-GBP-CAD-hovers-around-200-DMA-at-16685-breakout-to-see-further-upside-965902) has hit all targets.

Recommendation: Book partial profits at highs. Trail stop loss to 1.6845. Hold for 1.7080/ 1.7170/ 1.72.

FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 111.265 (Bullish), while Hourly CAD Spot Index was at -143.834 (Bearish) at 0530 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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