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
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
