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FxWirePro: GBP/CAD bounces off cloud support, extends break above 200-DMA

GBP/CAD chart - Trading View Technical Analysis: Bias turning Bullish - GBP/CAD was trading 0.35% higher on the day at 1.7321 at around 10:45 GMT - Price action has bounced off daily cloud - The pair is extending break a…

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FxWirePro: GBP/CAD bounces off cloud support, extends break above 200-DMA
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GBP/CAD chart - Trading View 

Technical Analysis: Bias turning Bullish

- GBP/CAD was trading 0.35% higher on the day at 1.7321 at around 10:45 GMT

- Price action has bounced off daily cloud

- The pair is extending break above 200-DMA, RSI is above 50 and biased higher

- GMMA indicator shows major and minor trend are turning bullish

- MACD is above zero, well in the positive territory

Support levels - 1.7278 (200-DMA), 1.7222 (Daily cloud), 1.7169 (50-DMA)

Resistance levels - 1.7335 (200H MA), 1.7450 (Upper week BB), 1.7656 (110-month EMA) 

Summary: A drop in oil prices is keeping the CAD depressed, adding upside support to the pair. On the other side, some optimism about falling UK covid cases supports sterling.

Upside bias reinforced as price action extends 200-DMA breakout. Scope for test of 110-month EMA at 1.7656. Retrace below 200-DMA negates any further upside in the pair. 
 

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