FX.co ★ Technical analysis of GBP/CAD for May 16, 2016

After finding the top near 1.8700, GBP/CAD started to range forming support around 1.8650. Eventually the support was broken and pair started to produce lower lows and lower highs.

The Fibonacci applied to the first corrective wave up after the 1.8650 support breakout shows that the S1 (1.8500) support was broken and the way to another extension up could be open. Today, the price rejected the R1 (1.8560) support and broke below the upward trend line.

Consider selling GBP/CAD at the current rate (1.8530) targeting either the S2 (1.8415) or S3 (1.8325) support areas. The stop loss should be just above the 1.8600 psychological resistance level.

Support: 1.8500, 1.8415, 1.8325

Resistance: 1.8560, 1.8650