GBP/CAD fails to hold above 1.8700

By FXStreet A recovery in the pound and a weakening CAD in spite of higher oil prices, resulted in the GBP/CAD cross extending its weekly rally up to 1.8742, from where it later retreated to the current 1.8660 region.

News coming from Canada showed that manufacturing sales contracted 0.9% in March, better-than-expected and the previous slide of 3.3%, but the Canadian dollar was unable to gather momentum with the news.

GBP/CAD technical perspective

“As for the cross, the 1 hour chart shows that the price is consolidating around a bullish 20 SMA, whilst the technical indicators head lower within bullish territory, steadily approaching to their mid-lines, and in line with further declines on a break below 1.8640, the immediate support,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the 20 SMA keeps heading higher below the current level, whilst the technical indicators retreat from near overbought levels, these lasts, keeping the upside limited as long as below 1.8745.”

Support levels: 1.8640 1.8590 1.8550. Resistance levels: 1.8670 1.8745 1.8790.
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Source:: FX Street