GBP/CAD may fall 41 - 60 pips

Our pivot point is at 1.7398.

Our preference

The downside prevails as long as 1.7398 is resistance.

Alternative scenario

The upside breakout of 1.7398, would call for 1.7430 and 1.7450.

Comment

The RSI is below 30. It could either mean that the pair is in a lasting downtrend or just oversold and therefore bound to retrace (look for bullish divergence in this case). The MACD is below its signal line and negative. The configuration is negative. Moreover, the price is trading under both its 20 and 50 period moving average (respectively at 1.7399 and 1.7412).

Supports and resistances

1.7450 **

1.7430 *

1.7398 **

1.7385

1.7370 last

1.7329

1.7310 **

1.7290 *

1.7271 **

Number of asterisks represents the strength of support and resistance levels.