GBP/CAD hovers near 3-week highs

The GBP/CAD cross advanced to a high of 1.8865, and holds nearby at the end of the day, as the Canadian dollar underperforms weighed by falling oil prices while the pound remained pretty resilient to Brexit vote jitters.

Crude turned south after the release of the EIA report, showing that US stockpiles decreased by 900,000 barrels less than the 1.67 million decline expected in the week ended June 17th, resulting in light, sweet crude falling to a fresh weekly low.

GBP/CAD technical perspective

“From a technical point of view, the pair remains within a consolidative range, as in the 1 hour chart shows that the price continues hovering around a directionless 20 SMA, whilst the technical indicators lack strength around their mid-lines,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, an early decline met buying interest around a strongly bullish 20 SMA, currently around 1.8760, but the RSI indicator is retreating from overbought levels whilst the Momentum indicator is about to cross its mid-line towards the downside, suggesting the cross may turn south on a downward acceleration below the mentioned support.”

Support levels: 1.8760 1.8705 1.8640. Resistance levels: 1.8880 1.8930 1.8990.