- GBP/CAD is extending weakness after break below 38.2% Fib, bias lower.
- The pair trades with a bearish bias. We see scope for test of 200-DMA at 1.7124.
- Momentum studies bearish, Stochs deep in oversold zone. We see -ve DMI dominance and ADX is rising in support.
- RSI shows weakness, well below 30 levels and bearish divergence on RSI and Stochs adds to bearish bias.
- Breach at 200-DMA will accentuate weakness. We then see scope for test of 61.8% Fib at 1.6822.
- On the upside, 5-DMA is immediate resistance at 1.7381. Decisive break above 100-DMA at 1.7612 invalidates bearish bias.
Support levels - 172, 1.7124 (200-DMA), 1.6822 (61.8% Fib)
Resistance levels - 1.7382 (5-DMA), 1.7430 (38.2% Fib), 1.7612 (100-DMA)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-GBP-CAD-consolidates-break-below-100-DMA-bias-lower-stay-short-1293241) has hit TP1.
Recommendation: Bias lower, stay short for further downside.
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