The GBPCAD pair is moving higher this morning after UK’s Brexit Secretary resigns overnight ratcheting up political pressure on Theresa May’s government. The 1.74420 level is being tested as resistance with a break above this area testing 1.74617 followed by the 1.75000 area. A move higher would look to the 1.75540 zone with the 1.75758 level coming in as previous support. The 1.76000 level would open the way for a move to 1.76382 and 1.76614 with a break out higher looking to attack trend line resistance at 1.77670. A break out through the trend line can make for 1.78520.
Support comes in at the moving averages in 4 hours with the 200 period at 1.74326 and the 50 at 1.74000. A break back under this area could run to support at 1.73370 or the 1.73000 level which has support close by at 1.72805. Below is the 1.72224 level followed by 1.72000. A loss of this level would put pressure on recently opened long positions and could result in a decline to the recent lows at 1.70528 or the 1.70000.
This pair is also breaking higher and significantly has broken its descending trend line support at 1.33273 and the 200 period 4 hour moving average at 1.33119. The prospect of a softer Brexit is supporting price and will drive price action in the coming hours as news headlines ebb and flow. But technical price action is supporting a bullish view for now. The 1.34000 level remains resistive and a test on this level with a subsequent break out higher can lead to an advance to 1.34594 followed by 1.35000 and 1.35480. A initial target for long positions comes in at 1.36300 falling trend line resistance.
Support comes in at the 100 period MA at 1.32345, the 1.32246 level and the 50 period MA at 1.32200. A loss of this level can point to a decline towards the 1.31000 area followed by the recent low at 1.30493 which hit the falling blue trend line as the channel bottom. This channel bottom is currently at 1.30000. This a significant area of support now with a loss of the area leading to a drive down towards 1.29000 initially followed by 1.28000 and beyond.