GBP/CAD pulls back after hitting weekly highs

The GBP/CAD cross rallied to a fresh weekly high of 1.7592, but retreated as pound's demand lost momentum, whilst the Canadian dollar accelerated its advance, tracking rising oil prices. At time of writing, the pair was trading at 1.7438, still up 0.36% on the day.

Oil prices surged towards the 50.00 region, after the US EIA report showed that crude oil stockpiles  fell by 4.1 million barrels for the week ending June 24th, the sixth consecutive weekly decline.

GBP/CAD technical perspective

“The short term picture for the cross suggests that it may retreat further, as in the 4 hours chart, the price is currently pressuring a flat 20 SMA and seems ready to break below it, whilst the RSI indicator has turned sharply lower after failing to overcome its mid-line, heading now south around 40,” said Valeria Bednarik, chief analyst at FXStreet. “In the same chart, the Momentum indicator holds above the 100 level, but given that the price is about to break below previous candle's low, the risk is towards the downside.”

Support levels: 1.7410 1.7360 1.7305. Resistance levels: 1.7480 1.7540 1.7600.