GBP/CAD finishes lower after 2 days of gains

The GBP/CAD cross closed the day higher on Thursday, although off session highs, following 2 days of losses.

GBP/CAD recovered from a 2-week low set earlier this week at 1.8820 and reached a daily pea of 1.8981 before trimming gains and closing around 1.8905.

The Canadian dollar was generally weaker against all of its major rivals as oil prices tumbled intraday, and despite the commodity recovered by the end of the day, the CAD was unable to regain the lost ground against the pound.

GBP/CAD technical outlook

“The movement seems mostly corrective although the downward risk seems limited in the short term, as in the 1 hour chart, the price is above a bullish 20 SMA, while the technical indicators hold above their mid-lines, lacking clear directional strength,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, however, the price was rejected on an early advance by a bearish 20 SMA, whilst the RSI indicator turned lower around 42 and the Momentum indicator remains flat below the 100 level, all of which suggests that the cross may resume its decline, on a break below the mentioned low.”

Support levels: 1.8870 1.8820 1.8770. Resistance levels: 1.8940 1.8990 1.9040.