FxWirePro: GBP/CAD holds strong trendline support at 1.66, break below eyes 78.6% Fib at 1.6389

GBP/CAD chart on Trading View used for analysis

• GBP/CAD has held support at strong trendline at 1.66 and edged higher. The British Pound holds onto modest gains post UK services PMI data.
   
• UK services PMI for September dipped to 53.9 as compared to 54.0 expected and previous month's reading of 54.3.
   
• Markets wary, reluctant to place any aggressive bets, UK PM May’s speech eyed for fresh Brexit update and trading impetus. 
   
• Technical studies are bearish. Price has dipped below daily cloud and has broken below 61.8% Fib.
   
• Stochs and RSI are sharply lower and RSI is below 50 levels. MACD shows bearish crossover on signal line and we see -ve DMI dominance.
   
• Break below strong trendline support at 1.66 will see further weakness. Scope then for test of 78.6% Fib at 1.6389.

Support levels - 1.66 (major trendline), 1.6389 (78.6% Fib)

Resistance levels - 1.6822 (61.8% Fib), 1.6784 (5-DMA)

Call update: We has advised a short in our previous call (https://www.econotimes.com/FxWirePro-GBP-CAD-Trade-Idea-1437208).

Recommendation: Hold for targets. 

FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 81.709 (Bullish), while Hourly CAD Spot Index was at 127.664 (Bullish) at 0915 GMT.

For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.