GBP/CAD faces resistance at 1.8400

By FXStreet The GBP/CAD cross advanced up to 1.8408, ending the day a couple of pips below 1.8400, as easing oil prices put the Canadian dollar under pressure against all of its major rivals.

Crude oil prices retreated on speculation OPEC output surged in April to near all time peaks. According to a Reuters survey, the OPEC pumped 32.64 million barrels a day in April, up 170,000 barrels from its March output.

Daily gains, however, were just enough to confirm the latest stability in the pair as it continues trading within April’s range.

GBP/CAD technical perspective

“According to the 4 hours chart, the upward potential remains limited, as the price is now above its 20 SMA that anyway remains flat around 1.8320, while the technical indicators have lost bullish strength within positive territory and turned south,” said Valeria Bednarik, chief analyst at FXStreet. “In the daily chart, the technical outlook is neutral-to-bullish, yet the cross needs to advance above 1.8445, April 12th daily high to become to look more constructive towards the upside, and extend up to 1.8500.”

Support levels: 1.8350 1.8280 1.8225. Resistance levels: 1.8445 1.8500 1.8550.
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Source:: FX Street