GBP/CAD Hits 2.0431, What’s Next?
The GBP/CAD advanced to a fresh weekly high of 2.0431, having retreated most of its daily gains but closing in positive territory anyway.
The pair rallied earlier in the day as the Pound outperformed its major rivals, while the Canadian dollar was in sell-off mode amid speculation the BOC may announce a rate cut on its upcoming policy meeting this Wednesday. But the late recovery in oil prices favored a recovery in the Canadian dollar, triggering the late pullback in the cross.
Technically, the 1 hour chart shows that the upside remains limited, as the price is back below its 20 SMA whilst the technical indicators aim slightly lower below their mid-lines, limiting chances of a strong recovery in the short term.
In the 4 hours chart, the technical indicators have lost their upward strength, but remain well above their mid-lines, whilst the 20 SMA heads higher around 2.0230, providing a strong intraday support for the upcoming sessions.