GBP/CAD Price Analysis: A bounce cannot be ruled out amid oversold RSI
|- Bear pennant breakdown on 1H eyes sub-1.69 levels.
- A temporary bounce cannot be ruled out amid oversold RSI.
- Upbeat UK jobs to offer support as it trades below major HMAs.
GBP/CAD holds the lower ground near 1.6950 in early Europe, having stalled the declines after the UK jobs data bettered expectations.
From a technical perspective, the bears seem to face exhaustion as the hourly Relative Strength Index (RSI) has entered the oversold territory.
The price charted a bearish pennant breakdown on the hourly chart earlier in the Asian session, following a break below the trendline support at 1.6994.
The downside target awaits at 1.6900, below which the pattern target of 1.6848 remains on the sellers’ radars.
However, a minor pullback cannot be ruled out amid oversold RSI and therefore, the price could head back towards the previous trendline support now resistance just below the 1.70 level.
Overall, the bias remains to the downside.
GBP/CAD: Hourly chart
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