FxWirePro: GBP/CAD hovers around 200-DMA at 1.6685, breakout to see further upside

• GBP/CAD is extending upside for 3rd successive session.
   
• The pair is trading a narrow range on the day, with the day's high at 1.6699 and low at 1.6676.
   
• Price action has broken above 100-DMA and is currently hovering around 200-DMA at 1.6685.
   
• Technical studies are bullish and breakout above 200-DMA could see further upside.
   
• Markets now factoring in a 25% rate hike from the BoE in November. Currently, the market is around 80% priced for a 25bps rate hike on November 2.
   
• Further, UK GDP data due Wednesday will be in focus for further impetus in the pair.

Support levels - 1.66, 1.6580 (5-DMA), 1.6558 (20-DMA)

Resistance levels - 1.6753 (Upper BB), 1.6796 (Sept 29 high), 1.6845 (50% Fib)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-20-DMA-caps-upside-in-GBP-CAD-break-above-could-see-retest-of-200-DMA-at-16663-940636) has achieved target.

Recommendation: Watch out for break above 200-DMA to go long, target 1.6750/ 1.68/ 1.6845

FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 137.56 (Bullish), while Hourly CAD Spot Index was at -0.004583 (Neutral) at 0520 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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