GBPCAD slipped aggressively from the May 6 top of 1.7727, breaking through the congested support lines formed during the August 2018-March 2019 up leg, with buyers only seeming to make progress in stalling this down push yesterday.

The short-term simple moving averages (SMAs) of 14- and 21-days still agree with the south move, and furthermore, the 14-day SMA paused the buyer’s effort to start a pullback. The long-term SMAs of 50-, 100- and 200-days also concur, with a bearish cross of the 50-SMA below the 200-SMA. The MACD and the RSI continue to show negative momentum as they remain in negative areas. The ADX implies that the down trend is very strong.

A continued collapse in the pair would require the 14-day SMA and initial resistance of 1.6425 to hold, and possibly the 100-SMA to cross below the 200-SMA, which would send the price to test a twenty-two-month low of 1.6145.

- advertisement -

A shift to the upside would require the pair to break the initial barriers of the 14-SMA and the resistance of 1.6425, before tackling the 21-SMA and then the 23.6% Fibo of the down leg from 1.7727 to 1.6145, of 1.6520. Jumping the hurdles of congested resistances coupled with the 38.2% Fibo of 1.6750 and the 50-SMA around there would make further northward displacement seem easier.

Summarizing, the bearish bias is prevalent across all time frames for now.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.