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Hugo in HTO Trading,

GBPCAD: Holding at the 50-week moving average

Since the beginning of the year the currency gained almost 0.9% but last week ended flat with a minor gain of 0.19% and is in a recovery phase since early November.

Last week the GBPCAD went back and forward with a narrow range and without any clear direction closing in the middle of the weekly range, the currency pair also managed to close within the previous week range, which suggests being clearly neutral, neither side is showing control.

The stochastic is showing bearish momentum although is still above the 50 mid line.

The currency pair bounced off the 38.2 Fibonacci retracement and seems it wants to carry on the downward move however is holding at the 50-week moving average that should now provide a dynamic support to the price.

Expecting an upward move to a Fibonacci retracement at 1.7098 on a bounce from other Fibonacci retracement at 1.6577 (scenario 1) however a break below the Fibonacci retracement at 1.6577 could push the currency pair further down to a weekly support  at 1.5884 (scenario 2).