GBPCAD slipped below the 20- and 40-simple moving averages (SMAs) in the daily timeframe, following the bounce off the five-month high of 1.7495 resistance level reached on 1.7495. The pair has been trading within an ascending sloping channel over the last five months, despite the upside spike towards 1.7495. The RSI indicator keeps moving slightly down, below the 50 level, while the MACD is strengthening its momentum to the downside.
Further declines may meet support around the lower channel line, which stands near the 1.6700 strong psychological level. More losses could endorse the long-term bearish view and drive the price until the 1.6590 support level, while even lower, the pair could hit the October 2017 low of 1.6380.
On the upside, resistance could occur around the 40- and then at the 20- SMAs at 1.6980 and 1.7040 respectively. Higher still, the next resistance could come from the upper band of the channel around 1.7400.
The medium-term picture continues to look predominantly bullish with trading activity remaining within the upside canal.