GBP/CAD fails to hold gains

The GBP/CAD cross extended its advance up to 1.8735, but it was unable to hold onto gains, and turned lower by the end of the day, closing the day slightly down around 1.8610/20.

Pound's self weakness was behind this intraday advance, although the Canadian dollar suffered a setback after the release of a larger-than-expected domestic trade deficit in February.

GBP/CAD technical view

“The cross retreated from its daily 20 SMA, which has been capping the upside for most of this past March, and remains as the immediate line in the sand for the ongoing bearish trend. Shorter term, the 1 hour chart shows that the price is currently below a bearish 20 SMA, whilst the technical indicators head lower below their mid-lines, supporting some additional declines in the short term,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the cross presents a neutral stance, as the technical indicators diverge from each other within neutral territory, as the price is stuck around a flat 20 SMA.”

Support levels: 1.8590 1.8550 1.8500. Resistance levels: 1.8680 1.8730 1.8775.