FxWirePro: GBP/CAD hits fresh 7-month lows at 1.6833, bias lower, stay short

Refer GBP/CAD chart on Trading View

• GBP/CAD is trading 0.29% lower on the day at 1.6842 at the time of writing.
   
• The pair is extending weakness for the 5th straight week to hit fresh 7-month lows at 1.6833.
   
• Price action is hovering above 61.8% Fib retracement at 1.6822, break below to see further weakness.
   
• 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 1.7377. 

Support levels - 1.6822 (61.8% Fib), 1.68, 1.6589 (Nov 13 low)

Resistance levels - 1.6962 (5-DMA), 1.7126 (50% Fib), 1.7397 (200-DMA)

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) is approaching final 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 -113.665 (Bearish), while Hourly CAD Spot Index was at 111.358 (Bullish) at 1045 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.