FxWirePro: GBP/CAD Trade Idea

GBP/CAD chart on Trading View used for analysis

FxWirePro Currency Strength Index for GBP/CAD: Bias Bearish
FxWirePro's Hourly GBP Spot Index was at -103.941 (Bearish)
FxWirePro's Hourly CAD Spot Index was at 103.147 (Bullish)

Technical Analysis: Bias Bearish
- Price has dipped below daily cloud
- The pair has broken below 61.8% Fib and is currently holding above trendline support at 1.66
- 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

Fundamental View:
- Disappointing UK construction PMI adds to the downward pressure. UK construction PMI fell to 52.1 in September from previous month's reading of 52.9 and worse than 52.5 expected.
- Brexit headlines will continue to drive the GBP through the broader markets. The path for Britain's EU exit still remains as cloudy and unexplained as it was following the referendum.
- On the other side, Canadian dollar lifted by the surprise resolution to NAFTA talks. US and Canada alongside Mexico, have reached a new trade deal, to replace NAFTA. 

Support levels - 1.66 (major trendline), 1.6389 (78.6% Fib)
Resistance levels - 1.6822 (61.8% Fib), 1.6867 (5-DMA)

Recommendation: Good to stay short on upticks, SL: 1.6825, TP: 1.66/ 1.65/ 1.6390

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