- GBP/CAD is extending gradual grind after break below major trendline support at 1.7175.
- UK manufacturing PMI hits 3-month lows, misses estimates, weighing on the pound.
- UK manufacturing PMI stood at 54.0, compared to a previous 54.3, missing estimates at 54.2.
- Upside in the pair seems capped at 5-DMA which is immediate resistance at 1.7104.
- Price action remains below daily cloud and major moving averages. Momentum studies are bearish. RSI shows weakness below 50 mark.
- Price action has dipped below 50% Fib and we see scope for test of 61.8% Fib at 1.6822.
- Retrace above trendline support at 1.7175 could see test of 21-EMA at 1.7244. Break above invalidates bearish bias.
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 TP1/2.
Recommendation: Book partial profits at lows. Hold for further weakness.
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 48.352 (Neutral), while Hourly CAD Spot Index was at 91.1901 (Bullish) at 1230 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
