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GBP/CAD consolidates at 7-week highs

FXStreet (Córdoba) - The GBP/CAD cross reached a 7-week high of 2.0349 on Thursday and continues to trade firm above 2.0320. The cross was favored by a steep recovery in the pound, regardless poor UK retail sales data, and the price is currently struggling around the major resistance located at 2.0325.

GBP/CAD technical perspective

“Short term, the 1 hour chart shows that the technical indicators are getting exhausted near overbought levels, but that the price is well above a bullish 20 SMA, pointing for some consolidation ahead”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, however, the upside seems more constructive, given that the price has extended well above its 20 SMA, whilst the technical indicators maintain their bullish slopes well above their mid-lines, in line with further advances. The price however, needs to clearly accelerate beyond the current level to confirm the upward extension for this Friday”.

Bednarik locates next support levels at 2.0270, 2.0220 and 2.0175, while she sees resistances at 2.0325, 2.0370 and 2.0430.

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