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

Anil Panchal FXStreet

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

Additional important levels

Overview
Today last price	1.6994
Today Daily Change	-0.0015
Today Daily Change %	-0.09%
Today daily open	1.7009

Trends
Daily SMA20	1.6916
Daily SMA50	1.7096
Daily SMA100	1.7224
Daily SMA200	1.7256

Levels
Previous Daily High	1.7049
Previous Daily Low	1.6968
Previous Weekly High	1.6915
Previous Weekly Low	1.6722
Previous Monthly High	1.7196
Previous Monthly Low	1.6891
Daily Fibonacci 38.2%	1.6999
Daily Fibonacci 61.8%	1.7018
Daily Pivot Point S1	1.6968
Daily Pivot Point S2	1.6927
Daily Pivot Point S3	1.6887
Daily Pivot Point R1	1.7049
Daily Pivot Point R2	1.709
Daily Pivot Point R3	1.7131

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.

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