GBP/CAD found support near 1.6600 and started an upside move.
There was a break above a key bearish trend line with resistance at 1.6790 on the daily chart.

GBP/CAD Technical Analysis

The British Pound declined heavily in July and August 2018 against the Canadian Dollar. The GBP/CAD pair settled below the 1.7200 and 1.7100 support levels plus the 50-day simple moving average to move into a bearish zone.

The pair traded towards the 1.6600 support zone where buyers took a stand. A support base was formed above the 1.6600 level and later the pair started a decent recovery. It traded above the 1.6700 resistance level and also broke a key bearish trend line with resistance at 1.6790 on the daily chart.

The pair even broke the 23.6% Fib retracement level of the last decline from the 1.7771 high to 1.6596 low. Finally, there was a solid push towards the 1.6950-1.7000 zone where sellers appeared.

Later, the pair corrected lower and it is currently consolidating above the 1.6800 level. If the highlighted trend line break is true, the pair may perhaps recover higher once again.

However, GBP/CAD is facing a significant resistance near the 1.7000 and 1.7040 levels. It represents the 38.2% Fib retracement level of the last decline from the 1.7771 high to 1.6596 low, and the 50-day SMA is also positioned near 1.7045.

Therefore, the pair could rise above 1.6950, but it is likely to face many hurdles above 1.7000. On the downside, supports are visible near the 1.6800 and 1.6740 levels.

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