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FxWirePro: GBP/CAD fails at major trendline resistance at 1.7625, slips below 5-DMA

GBP/CAD opened with a bearish gap, but has since managed to recover higher. The pair failed to hold break at major trendline resistance at 1.7625, we see further upside only on break above. Price action has slipped below…

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FxWirePro: GBP/CAD fails at major trendline resistance at 1.7625, slips below 5-DMA
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  • GBP/CAD opened with a bearish gap, but has since managed to recover higher.
     
  • The pair failed to hold break at major trendline resistance at 1.7625, we see further upside only on break above.
     
  • Price action has slipped below 5-DMA which is now immediate resistance at 1.7464.
     
  • Break above 100W SMA keeps scope for upside. Technical studies on weekly charts are still bullish.
     
  • Break above major trendline resistance at 1.7625 raises scope for test of 200W SMA at 1.8054.
     
  • On the flipside, retrace and close below 100W SMA invalidates bullish bias.

Support levels - 1.7375 (1H 200-SMA), 1.7222 (5W SMA), 1.7157 (20-DMA), 1.7110 (50-DMA)

Resistance levels - 1.7464 (5-DMA), 1.7465 (Nov 2017 highs), 1.7525 (Sept 2016 high), 1.7736 (38.2% Fib retrace of 2.09720 to 1.57361 fall)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-GBP-CAD-shows-decisive-break-above-100W-SMA-good-to-go-long-on-dips-1107532) hit TP1/2/3.

Recommendation: Watch out for break below 1H 200-SMA at 1.7375 for more weakness.

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