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GBP/CAD rejected from 1.8500, retraces daily gains

The GBP/CAD cross rallied up to 1.8502 on Tuesday, fueled by a strong, continued demand of the Pound. But the late recovery in oil prices underpinned Canadian dollar's gains, making the cross trim most of its daily gains.

GBP/CAD technical view

“Trading around 1.8370, the daily chart shows that the price holds above its 20 SMA, whilst the technical indicators have recovered from oversold levels, and turned flat around their mid-lines, suggesting a steeper advance is not yet confirmed,” said Valeria Bednarik, chief analyst at FXStreet. “Shorter term and for the upcoming hours, the cross may decline further, as in the 1 hour chart, the price is extending below its 20 SMA, whilst the technical indicators are crossing their mid-lines towards the downside. In the 4 hours chart, the technical indicators are retreating sharply from overbought levels, but the 20 SMA maintains its bullish slope around 1.8320, the level to break to confirm additional declines for this Wednesday.”

Support levels: 1.8320 1.8270 1.8220. Resistance levels: 1.8410 1.8465 1.8510.

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