GBP/CAD ends the day flat

The GBP/CAD cross continued trading within familiar ranges on Tuesday, having however, posted a fresh 6-week high of 1.8747 before retreating. The cross closed in the red, standing now flat for the week around 1.8645.

GBP/CAD technical view

“The daily chart shows that the upward potential keeps fading, as the technical indicators head lower within positive territory, whilst the 20 SMA losses upward strength and turns flat well below the current level”, said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, the 1 hour chart shows that the price is extending its decline below a horizontal 20 SMA, but also that the technical indicators head strongly lower below their mid-lines, suggesting the cross may continue falling. In the 4 hours chart, the current candle opened below a horizontal 20 SMA, while the technical indicators also turned south, but are stuck around their mid-lines, in line with the shorter term outlook. If the pair falls, a break below 1.8590 will likely exacerbate selling interest, and send the pair down to the 1.8480 region.”

Support levels: 1.8590 1.8545 1.8480. Resistance levels: 1.8675 1.8740 1.8800.