GBP/CAD rises above 1.7000

The GBP/CAD cross kept rallying, extending up to a fresh 6-day high of 1.7077, fueled by a sharp recovery in the pound on news that Theresa May will become the next UK PM as soon as next Wednesday, but also helped by falling oil prices that put the Canadian dollar under selling pressure.  GBP/CAD is currently trading at 1.7060, recording a 1.0% gain on Monday.

GBP/CAD technical perspective

“Holding near the mentioned daily high, the short term picture is still bullish, as in the 1 hour chart, the price is well above a bullish 20 SMA, whilst the technical indicators are consolidating within overbought levels, with limited downward slopes,” said Valeria Bednarik, chief analyst at FXStreet. “In the  4 hours chart, the 20 SMA is slowly turning north well below the current level, whilst the technical indicators have lost upward strength, but remain within positive territory, pointing to some consolidation before a new leg higher.”

Support levels: 1.6990 1.6935 1.6870. Resistance levels: 1.7090 1.7145 1.7190.