GBPCAD is currently recording a new 20-month low near 1.6344 as it is plummeting over the last couple of months. The momentum indicators are still developing in oversold levels. The RSI, which has been moving below its 30 level over the last month is pointing down, while the stochastic oscillator is looking for a bullish cross below the 20 level.
If the price decreases further and falling below today’s low, the 1.6200 psychological level, taken from the high on September 2017, could attract traders’ attention as there is no significant obstacle before that barrier.
On the other side, if the market edges higher, resistance should come from the 1.6590 hurdle, reached on September 2018. Should the price overcome this level, the spotlight will shift to the 20-day simple moving average (SMA), currently at 1.6675, and the 23.6% Fibonacci mark of the downfall from 1.7795 to 1.6340, near 1.6685.
Overall, GBPCAD has been underperforming and the bearish phase remains in play especially as the pair continue to trade near multi-month lows.
