Since the beginning of the year the currency gained more than 1.5% and last week ended flat with a minor gain of 0.05% plus is in a warning phase since early June.
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 currency pair is holding at the 50-week moving average that should now provide a dynamic support to the price. The stochastic is showing a strong bearish momentum and crossed below the 50 mid line.
Expecting an upward move to a weekly resistance at 1.7532 on a break above the previous day high at 1.6963 (scenario 1) and a break below the previous week low at 1.6722 could push the currency pair down to a weekly support at 1.6405 (scenario 2).