GBP/CAD reaches 3-month highs

The GBP/CAD cross kept rallying this Thursday up to 1.9207, as the Pound strengthened, despite dollar's demand, while the Canadian dollar plummeted on the back of retreating oil prices and poor Canadian macroeconomic data.

Canadian Wholesale Sales fell by 1.0% in March, against an expected decline of 0.5%. Additionally, crude oil prices shed roughly 3% daily basis on the back of dollar's strength, but trimmed all of its daily losses ahead of the close amid further output disruptions in Nigeria.

GBP/CAD technical view

“The cross has retreated from the mentioned high, but the short term picture is not yet confirming a steeper decline, as in the 1 hour chart, the price holds well above a bullish 20 SMA, whilst the technical indicators head lower within bearish territory, coming from extreme overbought levels”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators have corrected partially within extreme levels, but turned back higher, supporting additional advances on a break above the mentioned high.”

Support levels: 1.9095 1.9040 1.8980. Resistance levels: 1.9110 1.9165 1.9220.