GBPCAD’s negative momentum seems to be growing, something also reflected in the short-term oscillators. The pair looks to be restricted by the mid-Bollinger band and the 200-day simple moving average (SMA), following a one-month decline from the 1.7703 peak.
The MACD, deep in the negative region, has dipped back below its red signal line while the RSI is falling in the bearish territory. Moreover, the stochastic oscillator is turning negative as the %K line nears a bearish overlap with its red %D line.
To the downside, initial support could arise from the 1.6843 barrier ahead of the lower Bollinger band at 1.6792. If the price deteriorates further, it could extend towards the 1.6693 and 1.6611 troughs around the end of March before confronting the five-month low of 1.6536.
Should buyers resurface, resistance may originate from the 200-day SMA at 1.7043 and the nearby mid-Bollinger band at 1.7088 before the 1.7120 high overhead. Breaching this, the 1.7175 inside swing low of April 7 could halt the hike from engaging with the mostly flattened 100- and 50-day SMAs at 1.7241 and 1.7290 respectively. In the event the bulls surpass the mentioned SMAs, the focus could turn to the 1.7363 high and the upper Bollinger band at 1.7393.
Summarizing, the very-short-term timeframe is bearish below 1.7120 and the 200-day SMA. That said, a break below the 1.6536 low could turn the medium-term picture bearish as well, while a shift back above 1.7300 may see a neutral-to-bullish bias evolve in the near-term.
