GBP/CAD Price Analysis: Remains pressured around 20-month low
- GBP/CAD seesaws around the lowest levels since March 2020, sidelined of late.
- Sustained break of a multi-month-old support line directs bears to the 61.8% Fibonacci retracement level.
- 200-week SMA adds to the upside filters amid the sluggish Momentum line.
GBP/CAD defends the 1.6700 threshold during an inactive Thursday morning in Asia, seesawing around 1.6750 following the slump to the 20-month low.
Although oscillators do suggest a corrective pullback on the shorter timeframe, the weekly chart shows further downside potential for the GBP/CAD prices.
That being said, the 61.8% Fibonacci retracement (Fibo.) of August 2019 to March 2020 upside, around 1.6645 can offer immediate support to the quote ahead of the last yearly trough near 1.6535.
Following that, the late July 2019’s high near 1.6450 will be in the focus of the GBP/CAD sellers.
Meanwhile, a corrective pullback may aim for the 1.6800 round figure ahead of targeting the May 2021 low near 1.6855 and 50% retracement level close to 1.6920.
It should be noted, however, that the GBP/CAD bulls remain unconvinced till the quote remains below the 200-week SMA level of 1.7160.
Also challenging the upside momentum is the support-turned-resistance line from March 2020, near 1.7000 at press time.
GBP/CAD: Weekly chart
Trend: Further weakness 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.
