GBP/CAD Price Analysis: Under pressure after breaking below the 200-hour SMA, bears attack 1.6900

After failing to break below the 50-day moving average (DMA), on Friday, the GBP/CAD finally broke the former, trading at 1.691625 down 0.46%, during the day at the time of writing. Monday market risk-on mood attributed to positive news from South Africa that showed that the COVID-19 omicron variant, despite being contagious, cases are mild compared to the delta variant.

In the overnight session, the GBP/CAD traded sideways underneath the 50 and the 100-hour simple moving averages (HSMA’s), seesawing around the 200-HSMA. However, as the Wall Street session opened, the cross-currency pair slumped 30-pips, as the USD/CAD pair dropped amid an absent economic docket in Canada, dragging with it the GBP/CAD pair, based in CAD strength.

GBP/CAD Price Forecast: Technical outlook

At press time, the GBP/CAD is trading 30-pips above Friday’s low. The near-term bias is tilted to the downside, as the hourly SMA remains above the spot price. Furthermore, the 50-hour SMA crossed under the 100-hour SMA, implying that the pair could print another leg-down.

In the outcome of further downside, the GBP/CAD first support would be December 3 low at 1.6897. A breach of the latter would expose the November 26 cycle low at 1.6837, followed by the 1.6800 figure.

On the other hand, the first resistance would be the 200-hour SMA at 1.6973. If GBP bulls break that level, the next resistance would be the 50-hour SMA at 1.6986, immediately followed by the 100-hour SMA at 1.6995.