FxWirePro: GBP/CAD finds strong support at 200-DMA (1.7321), good to go short on break below

• GBP/CAD is extending range trade along 200-DMA, bias remains bearish.
   
• Price action has been rejected at 100-DMA and the pair has slipped below daily cloud.
   
• Momentum studies are bearish. RSI is below 50 mark and Stcoks are in oversold zone.
   
• Spike in oil prices is likely to keep the Canadian dollar supported, thus weighing on the pair.
   
• US oil spiked over supply considerations as Libya's National Oil Corporation declared 'force majeure', or unforeseeable circumstances on key oil supplies.
   
• Unexpected rise in UK construction PMI supports the pound. UK construction PMI unexpectedly rose to 53.1 in June, seven-month highs.
   
• GBP/CAD largely muted. Upside remains capped at 5-DMA which is sharply lower.
   
• Break below 200-DMA will see further weakness. While on the upside, we see bearish invalidation only above 100-DMA.

Support levels - 1.7321 (200-DMA), 1.7126 (50% Fib), 1.7054 (May 30 low), 1.6822 (61.8% Fib)

Resistance levels - 1.7361 (5-DMA), 1.7423 (21-EMA), 1.7665 (100-DMA)

Recommendation: Watch out for break below 200-DMA to go short, SL: 1.7450, TP: 1.7125/ 1.7055/ 1.6920/ 1.6825 

FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 122.897 (Bullish), while Hourly CAD Spot Index was at 149.176 (Bullish) at 1100 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.