FxWirePro: GBP/CAD recovery lacks traction, weakness to resume on break below 1.7175

• GBP/CAD trades in narrow range above 5-DMA, up 0.09% at the time of writing.
   
• The pair has shown a bounce off strong trendline support at 1.7175. We see weakness only on break below.
   
• Brexit jitters and political uncertainty around May’s government will likely keep the Pound under pressure.
   
• Recovery attempts lack traction. Price action remains below 200-DMA and daily cloud, bias remains bearish.
   
• Momentum studies are bearish. RSI is below 50 mark and we see -ve DMI dominance.
   
• Break below trendline support (currently at 1.7175) will see further weakness. Dip till 61.8% Fib likely.
   
• While on the upside, we see upside on close above 5-DMA. Bearish invalidation only above 200-DMA.

Support levels - 1.7248 (5-DMA), 1.72, 1.7165 (trendline), 1.71

Resistance levels - 1.73, 1.7379 (200-DMA), 1.74

Call update: Our previous call (https://www.econotimes.com/FxWirePro-GBP-CAD-finds-strong-support-at-200-DMA-17321-good-to-go-short-on-break-below-1398084) is progressing well.  

Recommendation: Hold for downside

FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 110.069 (Bullish), while Hourly CAD Spot Index was at 3.57915 (Neutral) at 0745 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.