Since the beginning of the year the currency lost almost 2.0% made but the first week of the year and is in a bearish phase since mid-December.
Last week the GBPCAD fell with a wide range and closed near the low of the week, also managed to close below the previous week low, which suggests a strong bearish momentum.
The currency pair is trading below the 10-week moving average that is now pointing downward and should act as a dynamic resistance. The stochastic is showing a bearish momentum and is below the 50 mid line.
Expecting a downward move to a weekly support at 1.5884 on a break below the previous week low at 1.6231 (scenario 1) however a bounce from 2016 low at 1.5884 could push the currency pair back up to 1.6405 (scenario 2).