GBP/CAD Price Analysis: 200-HMA guards bounces off intraday low
|- GBP/CAD attempts recovery moves from 1.7293, snaps two-day winning streak.
- Break of weekly support line, sustained trading below 200-HMA favor sellers.
- 61.8% of Fibonacci retracement will validate the pair’s upside towards the mid-August high.
GBP/CAD pullback from the day’s low to 1.7308 while heading into the London open on Wednesday. Even so, the cross prints 0.07% loss on a day as a break of an ascending trend line from Monday and failures to cross 200-HMA keep the bears hopeful.
As a result, the pair’s fresh move down to refresh 1.7293 low to revisit the previous day’s bottom around 1.7250 can’t be ruled out.
Though, the pair’s further downside is likely to be challenged by 1.7215 comprising the weekly low and 61.8% Fibonacci retracement of its late-July month’s upside.
Alternatively, the 1.7335/40 area including 200-HMA, 50.0% Fibonacci retracement of August 18-24 fall and the support-turned-into-resistance line restricts the pairs’ short-term recovery moves.
Also acting as an upside barrier is the 61.8% of Fibonacci retracement near 1.7370, a break of which can recall the mid-August tops surrounding 1.7465.
GBP/CAD hourly chart
Trend: Bearish
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.