GBP/CAD ends the day virtually unchanged

By FXStreet The GBP/CAD cross remained rangebound for a third consecutive day, although it ended the day slightly lower as fresh yearly highs in crude oil prices kept the Canadian dollar on demand. GBP/CAD was last trading at 1.8565.

WTI futures soared past $47.00 a barrel after Goldman Sachs said that the oil market is shifting into an output deficit “much earlier than expected” as demand strengthens.

GBP/CAD technical view

“The short term picture for the cross favors the downside, as in the 1 hour chart, the price is currently below a mild bearish 20 SMA, whilst the technical indicators are currently retreating from their mid-lines, and head south within bearish territory,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the GBP/CAD cross presents a neutral stance, as the price is stuck around a flat 200 EMA and a bearish 20 SMA, whilst the technical indicators head nowhere in neutral territory. A downward acceleration below 1.8460 is now required to confirm a sharper decline for the upcoming sessions, with scope then to fall down to the 1.8300 region.”

Support levels: 1.8540 1.8460 1.8410. Resistance levels: 1.8610 1.8670 1.8745.
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Source:: FX Street