FxWirePro: GBP/CAD refreshes 9-year lows, outlook bearish

Chart - Courtesy Trading View 

GBP/CAD was trading 0.20% lower on the day at 1.5321 at around 13:15 GMT. Mixed UK PMIs fail to impress GBP bulls.

The pair hit fresh 9-year lows at 1.5276 before paring some losses, outlook is strongly bearish.

The seasonally adjusted S&P Global/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) unexpectedly slips into contraction to 46.0 in August versus 51.1 expected and 52.1 in July.

UK Services PMI for August arrived at 52.5 when compared to July’s final score of 52.6 and 52.0 expected.

Further, the S&P Global/CIPS Composite PMI came in at 50.9 in August vs. 51.1 expected and 52.1 previous.

Also, follow-through rise in crude oil prices underpin the loonie and act as a headwind for the pair.

Technical indicators support downside in the pair. Momentum is strongly bearish. Stochs and RSI are sharply lower.

Price action is below cloud and major moving averages. GMMA indicator shows major and minor trend are bearish.

Support levels - 1.5269 (April 2013 low), 1.5244 (March 2013 low)

Resistance levels - 1.5404 (5-DMA), 1.5498 (21-EMA)

Summary: GBP/CAD trades with a strong bearish bias. Scope for the pair to test fresh multi-year lows.