GBP/CAD Price Analysis: Justifies bearish spinning top below 1.70, UK Retail Sales eyed
|- GBP/CAD extends pullback from 50-day EMA towards previous resistance line.
- Bullish MACD signals test further weakness, 200-day EMA and late-September levels challenge buyers.
- UK Retail Sales are likely to reverse previous contraction on MoM, which could fuel BOE rate hike concerns.
- GBP/USD awaits Brexit talks, UK Retail Sales as bulls battle 1.3500 hurdle
GBP/CAD remains on the back foot, mildly offered around 1.6990 during early Friday.
The cross-currency pair refreshed monthly high the previous day before stepping back from the 50-day EMA. In doing so, a bearish spinning top candlestick could be observed on the daily timeframe, suggesting further weakness of the quote.
However, a seven-week-old previous resistance line near 1.6970 restricts immediate declines of the pair.
Also acting as a downside filter is October’s low close to 1.6890, a break of which will direct the quote towards the yearly bottom surrounding 1.6720.
Alternatively, a daily closing past 50-day EMA, around 1.7040, will need validation from 1.7090 level to aim for the 1.7190-7200 resistance area including 200-day EMA and multiple tops marked during late September and October-start.
Should the GBP/CAD bulls remain dominant beyond 1.7200, late August month’s lows near 1.7275 will be in focus.
GBP/CAD: Daily chart
Trend: Pullback expected
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