GBP/CAD Price Analysis: Extends losses from three-week-old resistance line
|- GBP/CAD eases from one-week high amid bearish MACD.
- 50-day EMA, ascending trend line from July 23 offer key support.
- Multiple upside barriers to question bulls below the monthly top.
GBP/CAD remains pressured while declining to 1.7320 amid Friday’s Asian session. The pair recently took a U-turn from the one-week top as a downward sloping trend line from August 07 restricts the short-term upside amid bearish MACD.
Hence, sellers are targeting the 1.7300 threshold as immediate rest ahead of confronting the joint of 50-day EMA and a one-month-old support line near 1.7250.
To validate the pair’s further weakness past-1.7250, 50% Fibonacci retracement level of June-July upside, around 1.7220, will precede the early-July top surrounding 1.7210.
Meanwhile, the pair’s rise beyond the immediate resistance line, at 1.7400 now, will not be able to convince long-term bulls as mid-month tops near 1.7460/65 and August 07 peak surrounding 1.7530 can challenge the further upside momentum.
However, a clear break above 1.7530 will be a green signal to the pair’s rally towards the July-end top close to 1.7675.
GBP/CAD daily chart
Trend: Further weakness expected
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.