- GBP/CAD extends weakness for the 3rd straight session, bias bearish.
- The pair has broken strong trendline support at 1.7175 raising scope for further weakness. Dip till 61.8% Fib now likely.
- European Union's head Brexit negotiator Michel Barnier's rejection of May's latest 'third option' Brexit proposal weighs on GBP.
- Price action remains below 200-DMA and daily cloud and has broken below 50% Fib.
- Momentum studies are bearish. RSI is below 50 mark and we see -ve DMI dominance.
- 5-DMA is immediate resistance at 1.7197. We see bearish invalidation only above 200-DMA.
Support levels - 1.71, 1.7054 (May 30 low), 1.6822 (61.8% Fib)
Resistance levels - 1.7198 (5-DMA), 1.72, 1.7293 (21-EMA)
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) has hit TP1.
Recommendation: Book partial profits. Hold for downside.
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 19.5872 (Neutral), while Hourly CAD Spot Index was at 149.235 (Bullish) at 0945 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
