GBP/CAD advances as loonie weakens ahead of BoC decision

GBP/CAD turned higher on Tuesday following two days of losses, mostly due to Canadian dollar weakness, which tracked oil prices lower during the New York session. The cross climbed 0.5% to a peak of 1.9060 and finishes the day a few pips below.

Meanwhile, Loonie investors might adopt a cautious stance over the next hours ahead of the Bank of Canada decision on monetary policy, with the bank broadly expected to leave rates unchanged at 0.5%.

GBP/CAD technical view

“Short term, the 1 hour chart shows that the price is currently advancing beyond a now bullish 20 SMA, whilst the technical indicators head north within positive territory, supporting some further gains on a break above 1.9075, Friday’s high and the immediate resistance,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical outlook is also positive, as the price has been holding above its 20 SMA for most of the American session, whilst the technical indicators present tepid bullish slopes above their mid-lines.”

Support levels: 1.9005 1.8850 1.8805. Resistance levels: 1.90751.9130 1.9190.

GBP/CAD turned higher on Tuesday following two days of losses, mostly due to Canadian dollar weakness, which tracked oil prices lower during the New York session. The cross climbed 0.5% to a peak of 1.9060 and finishes the day a few pips below.

(Market News Provided by FXstreet)