GBP/CAD eases from fresh 3-month highs

The GBP/CAD cross climbed to 1.9300 before pulling back to end the day pretty much flat at 1.9176, as both, the Canadian dollar and the pound outperformed its major rivals, due to different reasons.

The GBP rallied on the back of further relief in regards of avoiding a Brexit, while the CAD rallied after the BOC decided to maintain its target for the overnight rate at 0.5%, whilst offering quite a hawkish statement as Poloz said that "despite weakness in the first quarter, a number of indicators, including employment, point to a return to solid growth in 2016."

GBP/CAD technical perspective

“The cross posted a higher high for the week at 1.9300 before retreating towards its daily opening, which maintains the risk towards the upside in the longer run. In the 1 hour chart, the price is now a few pips below a horizontal 20 SMA, while the technical indicators retreated towards their mid-lines, and the RSI indicator already heads lower around 47, suggesting it may correct lower particularly on a break below 1.9125, the immediate support,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price is above a mild bullish 20 SMA, while the technical indicators consolidate within positive territory, indicating the risk remains towards the upside.”

Support levels: 1.9125 1.9070 1.9020. Resistance levels: 1.9245 1.9295 1.9350.