- GBP / CAD tries to recover from moves of 1.7293, ends a two-day winning streak.
- Breaking weekly support line, trading supported below 200-HMA favors sellers.
- 61.8% of the Fibonacci retracement will validate the pair’s rise to the mid-August high.
GBP / CAD retreats from the day’s low at 1.7308 as it heads towards the London open on Wednesday. Even so, the cross prints a 0.07% one-day loss as a break of an ascending trendline from Monday and the 200-HMA breach failures keep the bears hopeful.
As a result, the pair’s further downward movement to refresh 1.7293 low to revisit yesterday’s low around 1.7250 cannot be ruled out.
However, the pair’s further decline is likely to be challenged by 1.7215 comprising the weekly low and a 61.8% Fibonacci retracement of its month at the end of July.
Alternatively, the 1.7335 / 40 area comprising 200-HMA, 50.0% Fibonacci retracement of the August 18-24 drop and the support line turned into resistance restricts the pairs’ short term recovery moves.
The 61.8% Fibonacci retracement near 1.7370 also acts as a bullish barrier, a breakout of which may point to mid-August highs around 1.7465.
GBP / CAD hourly chart