GBP/CAD consolidates near 2-week highs

Pound's continued recovery sent the GBP/CAD cross further up this Tuesday, reaching a fresh 2-week high of 1.7279. Both Central Banks will have their economic policy meetings during the next 48 hours, with the BOC expected to remain on hold this Wednesday, and maintain rates at 0.5%, and the Bank of England expected to announce some sort of easing, either for this month or the next.

GBP/CAD technical view

“The cross sharp recovery seems poised to extend, as in the 1 hour chart, the 20 SMA advanced alongside with the price, and stands now around 1.7175, whilst the technical indicators are consolidating within overbought territory, rather on lower volumes at this time of the day than as a sign that the upside scope is over,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the 20 SMA also advanced below the current level, while the RSI indicator consolidates around 68, as the Momentum remains within positive territory, but lacking directional strength.”

Support levels: 1.7220 1.7175 1.7120 Resistance levels: 1.7295 1.7350 1.7410.