GBP/CAD Price Analysis: Attacks 1.7300 on the break of monthly support line
- GBP/CAD refreshes intraday low following its failure to extend previous day’s bounce off 1.7296 beyond 1.7332.
- Bearish MACD, sustained break of short-term support line favor sellers.
- Bulls may wait for fresh weekly high before taking entries.
GBP/CAD bounces off the recently flashed intraday low of 1.7291 to 1.7308 during the pre-European session trading on Thursday. Even so, the cross prints losses on a daily basis while extending the downside break of an ascending trend line from July 23.
The downside moves may also take clues from the bearish MACD to aim for another rising trend line, from July 01, near 1.7220.
However, the pair’s declines past-1.7220 will be challenged by a confluence of 100-day and 200-day SMAs close to 1.7200, a break of which could recall 1.7000 psychological magnet back to the chart.
On the upside, a daily closing past-1.7320 level comprising the support-turned-resistance becomes necessary for the quote to target the weekly high near 1.7465.
In a case where the bulls manage to cross 1.7465, the monthly high around 1.7590 and July month’s peak close to 1.7675 will become their favorites.
GBP/CAD daily chart
Trend: Further downside expected