GBP/CAD Price Analysis: Struggle with 21-DMA continues as bulls fight for control


  • GBP/CAD remains stuck in a tight range around 21-DMA.
  • Daily RSI stays bearish, pointing to limited upside.
  • The cross awaits fresh impetus to extend the rebound.  

GBP/CAD is attempting a bounce above 1.7050 on Tuesday, snapping a three-day losing streak amid persistent strength seen in GBP/USD.

Markets shrug-off renewed Brexit concerns surrounding the Northern Ireland (NI) Protocol, as broad US dollar weakness continues to underpin the cable. Meanwhile, subdued price action in USD/CAD fails to have any impact on the cross.

From a near-term technical perspective, the spot is looking to find acceptance above the 21-daily moving average (DMA), now at 1.7078.

Sellers continued to lurk above the latter over the past week, limiting the advances in the cross.

Therefore, daily closing above the 21-SMA would open doors towards a test of the 1.7100 round number. The next stop for the bulls is seen at the previous week high at 1.7155.

GBP/CAD daily chart

However, with the 14-day Relative Strength Index (RSI) still trending below the midline, it remains to be seen if the recovery momentum sustains.

A failure to hold above the 21-SMA hurdle could revive the bearish bets, knocking off the price back towards the 1.7030 support area.

A breach of the last would expose the 1.7000 psychological threshold.

GBP/CAD additional levels to watch

GBP/CAD

Overview
Today last price 1.7078
Today Daily Change 0.0025
Today Daily Change % 0.15
Today daily open 1.7053
 
Trends
Daily SMA20 1.7078
Daily SMA50 1.7232
Daily SMA100 1.7363
Daily SMA200 1.7288
 
Levels
Previous Daily High 1.7103
Previous Daily Low 1.703
Previous Weekly High 1.7155
Previous Weekly Low 1.7029
Previous Monthly High 1.7595
Previous Monthly Low 1.6952
Daily Fibonacci 38.2% 1.7058
Daily Fibonacci 61.8% 1.7075
Daily Pivot Point S1 1.7021
Daily Pivot Point S2 1.6989
Daily Pivot Point S3 1.6948
Daily Pivot Point R1 1.7094
Daily Pivot Point R2 1.7135
Daily Pivot Point R3 1.7167

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD eases below 1.1900, Eurozone GDP, US PCE Inflation eyed

EUR/USD holds the lower ground below 1.1900 amid broad-based US dollar rebound. The dollar benefits from covid woes, ignores Treasury yields pullback. US GDP backs Fed’s resistance to discuss tapering. A busy docket ahead, with focus on Eurozone GDP and US PCE inflation.

EUR/USD News

GBP/USD: Bulls again keep 1.4010 on radar

GBP/USD seesaws around 1.3970 amid early Asian session trading on Friday, after renewing the multi-day tops the previous day. The cable pair rose past 100-DMA for the first time since June 23 on Thursday amid stronger RSI and Momentum lines.

GBP/USD News

EUR/USD eases below 1.1900, Eurozone GDP, US PCE Inflation eyed

EUR/USD holds the lower ground below 1.1900 amid broad-based US dollar rebound. The dollar benefits from covid woes, ignores Treasury yields pullback. US GDP backs Fed’s resistance to discuss tapering. A busy docket ahead, with focus on Eurozone GDP and US PCE inflation.

EUR/USD News

Litecoin price redefines momentum, as LTC approaches an impressive milestone

Litecoin price confirms breakout from the governing falling wedge pattern on July 25, marking a turning point for the altcoin and introducing new technical challenges.

Read more

Why Tesla jumped over 4.50% on Elon Musk’s tweet?

Tesla needs to make a move, show its hand. Tesla stock saw a massive move higher on Thursday, rebounding firmly towards $700. Tesla shares rallied 4.69% to close the day at $677.35, slightly off the two-week highs reached at $683.47.

Read more

Forex MAJORS

Cryptocurrencies

Signatures