GBP/CAD Price Analysis: Extends losses from three-week-old resistance line
- GBP/CAD eases from one-week high amid bearish MACD.
- 50-day EMA, ascending trend line from July 23 offer key support.
- Multiple upside barriers to question bulls below the monthly top.
GBP/CAD remains pressured while declining to 1.7320 amid Friday’s Asian session. The pair recently took a U-turn from the one-week top as a downward sloping trend line from August 07 restricts the short-term upside amid bearish MACD.
Hence, sellers are targeting the 1.7300 threshold as immediate rest ahead of confronting the joint of 50-day EMA and a one-month-old support line near 1.7250.
To validate the pair’s further weakness past-1.7250, 50% Fibonacci retracement level of June-July upside, around 1.7220, will precede the early-July top surrounding 1.7210.
Meanwhile, the pair’s rise beyond the immediate resistance line, at 1.7400 now, will not be able to convince long-term bulls as mid-month tops near 1.7460/65 and August 07 peak surrounding 1.7530 can challenge the further upside momentum.
However, a clear break above 1.7530 will be a green signal to the pair’s rally towards the July-end top close to 1.7675.
GBP/CAD daily chart
Trend: Further weakness expected