GBP/CAD Price Analysis: Fades upside momentum near 11-week top
- GBP/CAD eases from 1.7368, highest since May 07 amid overbought RSI.
- A sustained break of the key SMA confluence and 50% Fibonacci retracement keeps the bulls hopeful.
- 1.7120/15 acts as an additional downside barrier, 61.8% Fibonacci retracement offers immediate resistance.
GBP/CAD takes rounds to 1.7335 amid the early Thursday morning in Asia. The quote recently surged to a multi-day high following its successful break of 50% Fibonacci retracement of March month’s fall. However, overbought RSI conditions offer breathing space to the bulls, which in turn can lure sellers seeking entries.
In doing so, the resistance-turned-support of 1.7300, comprising 50% Fibonacci retracement, will be important as a break of which can trigger fresh selling towards the confluence of 100-day and 200-day SMAs near 1.7165/60.
Though, the pair’s further downside will be restricted by a descending trend line from the early-March and 38.2% Fibonacci retracement level near 1.7120/15, a break of which will attack the 1.7000 threshold.
Meanwhile, 61.8% Fibonacci retracement level of 1.7490 and 1.7500 round-figures are on the buyers’ watch-list during the additional north-run.
Given the quote’s successful rise past-1.7500, the April month’s high around 1.7700 will be in the spotlight.
GBP/CAD daily chart
Trend: Pullback expected
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.
