GBP/CAD retreats from 3-week highs

The GBP/CAD cross extended its advance to a high of 1.8878, but pared gains and retreated to end the day modestly lower, still driven exclusively by the pound and Brexit uncertainty.

At time of writing, GBP/CAD is trading at 1.8730, 0.41% below its opening price and at a striking distance of its daily lows.  

GBP/CAD technical outlook

“The cross is poised to extend its downward corrective move intraday, given that in the 4 hours chart, the technical indicators are retreating sharply from overbought territory, although still holding above their mid-lines. Nevertheless, the 20 SMA has crossed above the 200 EMA below the current level, and should offer a strong dynamic support on declines towards the 1.8620 region,” said Valeria Bednarik, chief analyst at FXStreet. “Shorter term and according to the 1 hour chart, the pair presents a neutral stance, although the downward potential is also growing, with an immediate support now at 1.8705”.

Support levels: 1.8705 1.8640 1.8590 Resistance levels: 1.8775 1.8845 1.8890