GBP/CAD fails to extend beyond 1.6650 and retreats to 1.6620

Pound's rebound from 1.6540 is capped at 1.6650.
The sterling remains weak against the commodity-linked CAD.
GBP/CAD seen appreciating towards 1.6950 – Scotiabank.

Guillermo Alcala FXStreet

Sterling’s recovery attempt from multi-year lows at 1.6540 seen earlier today has been capped about 110 pips higher, at 1.6650, before pulling back to the 1.6620 area.

Higher oil prices are supporting the CAD

The pound has been unable to post a significant recovery as the Canadian dollar remains fairly strong with oil prices picking up from weekly lows.

The lack of progress in the talks between Russia and Ukraine and the warning from the International Energy Agency (IEA) that the decline in global demand caused by higher prices will not offset the shut-in of Russian supplies have renewed concerns about a crude shortage, which has boosted the commodity-linked CAD against its most majors.

Earlier today, the pound has been showing weakness, weighed by Thursday’s dovish statement by the Bank of England. The bank hiked interest rates as widely expected, although the tone of its monetary policy statement was considered tilted to the dovish side, which triggered a broad-based GBP weakness.

GBP/CAD expected to appreciate towards 1.6950 – Scotiabank

From a technical perspective, FX analysts at Scotiabank see the pair rallying towards 1.6950 over the coming months: “We remain of the view that GBP/CAD looks relatively ‘cheap’ here, near the base of the sideways range that has persisted since 2020, and we look for GBP gains through 1.6950 to trigger additional strength back to the low 1.70s.”

Technical levels to watch

GBP/CAD

Overview
Today last price	1.6616
Today Daily Change	0.0012
Today Daily Change %	0.07
Today daily open	1.6604

Trends
Daily SMA20	1.6933
Daily SMA50	1.7063
Daily SMA100	1.7029
Daily SMA200	1.7148

Levels
Previous Daily High	1.6726
Previous Daily Low	1.6582
Previous Weekly High	1.6921
Previous Weekly Low	1.6569
Previous Monthly High	1.7379
Previous Monthly Low	1.6984
Daily Fibonacci 38.2%	1.6637
Daily Fibonacci 61.8%	1.6671
Daily Pivot Point S1	1.6549
Daily Pivot Point S2	1.6493
Daily Pivot Point S3	1.6405
Daily Pivot Point R1	1.6693
Daily Pivot Point R2	1.6781
Daily Pivot Point R3	1.6837

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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