GBP/CAD fails to hold above 1.8700

The GBP/CAD cross held within its latest range, as both, the GBP and the CAD traded generally lower against most of its major rivals. The cross however, reached a fresh 5-week high of 1.8731 before retreating partially, ending the day with some modest gains around 1.8680.

GBP/CAD technical perspective

“Short term, the 1 hour chart shows that the price remains above a mild bullish 20 SMA which leads the way higher, whilst the technical indicators head slightly higher above their mid-lines”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the upside is also favored as the price holds above its 20 SMA, whilst the Momentum indicator has bounced higher after a limited downward move within positive territory, and the RSI indicator holds flat around 66. The cross can now correct down to 1.8590 without affecting the ongoing bullish trend, although a break below it risks a decline towards the 1.8500 figure.”

Support levels: 1.8645 1.8590 1.8545. Resistance levels: 1.8740 1.8800 1.8855.