GBP/CAD fails to sustain gains, back to square one

The GBP/CAD cross trimmed its modest daily gains and closed the day pretty much flat around the 1.9030 region, with dull trading extending all through the forex board this Monday.

The pair advanced up to 1.9094 early Europe on the back of Pound’s short-lived strength, also favored by a mild negative tone in oil prices, which weighed on the CAD.

GBP/CAD technical view

“The cross presents a neutral tone in the short term, as in the 1 hour chart, the technical indicators remain flat around their mid-lines, whilst the price moves a few pips on both sides of an horizontal 20 SMA,” said Valeria Bednarik, chief analyst at FXStreet. "In the 4 hours chart, the price has settled below a mild bullish 20 SMA, while the technical indicators are now horizontal, the Momentum within bearish territory and the RSI around 60, without offering clear directional clues for this Tuesday.”

Support levels: 1.8970 1.8920 1.8860. Resistance levels: 1.9065 1.9110 1.9165.