FxWirePro: 20-DMA caps upside in GBP/CAD, break above could see retest of 200-DMA at 1.6663

• GBP/CAD has paused downside to edge higher from 3-week lows at 1.6350.
   
• The pair is trading up 0.85% on the day, but remains capped below 20-DMA at 1.6533.
   
• A decisive break above 20-DMA could see retest of 200-DMA at 1.6663.
   
• We see extension on consolidation in the pair after breakout of major trendline at 1.6150 on Sept 14 trade.
   
• We see bearish invalidation only on breakout above 200-DMA, pair could resume upside.

Support levels - 1.6484 (5-DMA), 1.6313 (23.6% Fib retrace of 1.7853 to 1.5837 fall), 1.6237 (Double bottom July 21 and Feb 27)

Resistance levels - 1.6534 (20-DMA), 1.66 (38.2% Fib), 1.6663 (200-DMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-GBP-CAD-fails-at-200-DMA-breaks-20-DMA-at-16487-good-to-go-short-on-rallies-936489) has hit TP1&2.

Recommendation: Watch out for break above 20-DMA (1.6534) to go long for 1.6663

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