GBP/CAD little changed after roundtrip to 1.8500

The GBP/CAD cross advanced up to 1.8500 during the European session, as the Pound was buoyed, but the cross then trimmed gains and ended the day pretty much flat around 1.8360, as oil's prices extended their gains to fresh monthly highs, lifting the loonie.

WTI settled above $40.00 a barrel after a US government forecast said that US shale oil production is expected to fall for a seventh month in a row in May.

GBP/CAD technical levels

“As for the cross, the 1 hour chart shows that the negative tone prevails, as the price is currently developing below its 20 SMA, whilst the technical indicators head slightly lower within neutral territory,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the 20 SMA maintains a strong bearish slope, whilst the technical indicators have lost their bearish strength within negative territory, still far from suggesting a recovery. As commented on previous updates, the downward risk is high, particularly on a break below past week low of 1.8283, with investors now willing to prove the 1.8000 critical figure.”

Support levels: 1.8335 1.8280 1.8230. Resistance levels: 1.8380 1.8445 1.8500.