FxWirePro: GBP/CAD bears on track to break trendline support at 1.7165 on weak UK retail sales, dip till 61.8% Fib at 1.6822 likely

• GBP under pressure after UK’s Retail Sales came in below expectations for the month of June.
   
• UK monthly retail sales data showed an unexpected decline of 0.5% m/m in June. 
   
• Meanwhile, core retail sales, stripping the auto motor fuel sales, dropped 0.6% m/m.
   
• Weak retail sales along with disappointing inflation data have further dampened prospects for a BoE rate hike move in August. 
   
• Further, Brexit jitters and political uncertainty around May’s government keep the British Pound under heavy pressure.
   
• GBP/CAD is extending weakness below 200-DMA and daily cloud, bias remains bearish.
   
• Momentum studies are bearish. RSI is below 50 mark and we see -ve DMI dominance.
   
• Break below trendline support at 1.7165 will see further weakness. Dip till 61.8% Fib likely.
   
• While on the upside, we see bearish invalidation only above 200-DMA.

Support levels - 1.7165 (trendline), 1.71, 1.7054 (May 30 low), 1.6915 (Dec 6, 2017 low)

Resistance levels - 1.7299 (5-DMA), 1.7362 (21-EMA), 1.7368 (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 progressing well. 

Recommendation: Stay short for targets.