GBP/CAD climbs to 3-month highs

The GBP/CAD cross rallied to 1.9245, a fresh 3-month high, as the Pound strengthened sharply across the board, while the Canadian dollar failed to benefit from oil's gains.

GBP/CAD retreated slightly from recent highs and it was last trading around 1.9225, recording a 1% daily gain.

GBP/CAD technical outlook

“Short term, the 1 hour chart shows that the price is above a bullish 20 SMA, but also that the technical indicator are turning south from near overbought levels, in line with a downward corrective move,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the RSI indicator has corrected extreme overbought conditions, but holds near 70, whilst the Momentum indicator has turned flat well above the 100 level, indicating the downward risk is for now, limited.”

Support levels: 1.9205 1.9160 1.9110. Resistance levels: 1.9245 1.9295 1.9350.