- The British Pound after as monstrous run towards 1.7330 against the Canadian Dollar found resistance.
- The GBPCAD pair just broke an ascending channel pattern at 1.7260 on the 4-hours chart to ignite a downside move.
- Today, the UK Retail Sales for March 2017 (MoM) released by the National Statistics posted a decline of 1.8% more than the forecast of -0.2%.
GBPCAD Technical Analysis
The British Pound had an impressive rise towards 1.7340 against the Canadian dollar, as it traded as high as 1.7339 before facing resistance. The GBPUSD pair started a downside move, and broke the 1.7300 support.
The downside move was such that the pair even broke the 23.6% Fib retracement level of the last wave from the 1.7040 low to 1.7339 high.
GBPCAD 4-hour Chart
The most important move was close below an ascending channel pattern at 1.7260 on the 4-hours chart, opening the doors for more declines.
It looks like the pair is heading towards the 23.6% Fib retracement level of the last wave from the 1.6556 low to 1.7339 high at 1.7154.
On the upside, the broken channel support at 1.7270-80 is now acting as a resistance, and may continue to stop gains.
The H4 RSI of GBPCAD is moving down from the 75 level, suggesting a downside move.
UK Retail Sales
Today in the UK, the Retail Sales for March 2017 was released by the National Statistics. The forecast was slated for the total receipts of retail stores to decline by 0.2% in March 2017, compared with the previous month.
However, the actual result was lower, as the UK Retail Sales posted a decline of 1.8%. Considering the yearly change, there was an increase of 1.7% in March 2017, compared with the same month a year ago. Again, it was disappointing since the forecast was +3.4%, and it was even worse than the last +.3.7%.
The report published by the National Statistics highlighted that “Online sales (excluding automotive fuel) increased year-on-year by 19.5% and by 0.5% on the month, accounting for approximately 15.5% of all retail spending”.
Overall, results were not as the market was expecting, which may weigh on GBPUSD and GBPCAD in the near term. The latter could even head lower towards 1.7150.