GBP/CAD Price Analysis: Justifies bearish spinning top below 1.70, UK Retail Sales eyed

• GBP/CAD extends pullback from 50-day EMA towards previous resistance line.
• Bullish MACD signals test further weakness, 200-day EMA and late-September levels challenge buyers.
• UK Retail Sales are likely to reverse previous contraction on MoM, which could fuel BOE rate hike concerns.
• GBP/USD awaits Brexit talks, UK Retail Sales as bulls battle 1.3500 hurdle

GBP/CAD remains on the back foot, mildly offered around 1.6990 during early Friday.

The cross-currency pair refreshed monthly high the previous day before stepping back from the 50-day EMA. In doing so, a bearish spinning top candlestick could be observed on the daily timeframe, suggesting further weakness of the quote.

However, a seven-week-old previous resistance line near 1.6970 restricts immediate declines of the pair.

Also acting as a downside filter is October’s low close to 1.6890, a break of which will direct the quote towards the yearly bottom surrounding 1.6720.

Alternatively, a daily closing past 50-day EMA, around 1.7040, will need validation from 1.7090 level to aim for the 1.7190-7200 resistance area including 200-day EMA and multiple tops marked during late September and October-start.

Should the GBP/CAD bulls remain dominant beyond 1.7200, late August month’s lows near 1.7275 will be in focus.

GBP/CAD: Daily chart

Trend: Pullback expected