The British pound was hammered during this past week against most other major currencies. However, it was relatively firmer against the Canadian dollar as the latter one also weakened during this past week. Furthermore, the GBPCAD pair has breached an important support area, which might result in more losses in the pair in the short term. The technical indicators are pointing mixed outcome, which means one need to be very careful trading this pair moving ahead especially when the pair looming between important support and resistance levels. There was a critical bullish trend line on the hourly chart for the GBPCAD pair, which was taken out by the British pound sellers earlier. After the break, the pair fell close to the 50% fib retracement level of the last leg higher from the 1.8214 low to 1.8458 high. The mentioned fib level also coincided with the 200 hourly moving average. So, this particular bounce came from a very technical level. However, on the other hand the pair is approaching a critical resistance area of the broken trend line, which as of writing is coinciding with the 100 moving average. A failure to break the 1.8340-45 level might call for a down-move back towards the 200 moving average. It would be interesting to see whether the pair can hold the same this time around or not. So, overall the pair is trading in between an important support and resistance level, as a break of either one might call for a sharp move in the short term.

Source