FxWirePro: GBP/CAD extends rout for 5th straight week, eyes 78.6% Fib at 1.6389

Refer GBP/CAD chart on Trading View

• GBP/CAD extends rout for 5th straight week, trades 0.06% lower on the day at 1.6723 at the time of writing.
   
• The pair is extending weakness for the 5th straight week hits fresh 9-month lows at 1.6678.
   
• Price action has broken below 61.8% Fib retracement at 1.6822, further weakness on break below.
   
• Technical indicators on daily charts are heavily bearish. Scope for test of 1.6589 (Nov 13 low) ahead of 1.6389 (78.6% Fib).
   
• Rising odds of a hard Brexit keeping the pound under pressure. We see bearish invalidation only above 110-EMA at 1.7335. 

Support levels - 1.6589 (Nov 13 low), 1.6526 (Sept 27 low), 1.6389 (78.6% Fib)

Resistance levels - 1.6789 (5-DMA), 1.6822 (61.8% Fib), 1.70, 1.7126 (50% Fib)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-GBP-CAD-finds-strong-support-at-200-DMA-17321-good-to-go-short-on-break-below-1398084) has hit all targets.

Recommendation: Stay short for further weakness. Target 1.6590/ 1.65/ 1.6390. 

FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at -117.905 (Bearish), while Hourly CAD Spot Index was at 44.8026 (Neutral) at 1145 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.