GBP/CAD recovers ground, but finishes off daily highs

The GBP/CAD cross erased most of its Wednesday's losses, extending intraday up to 1.7420 a fresh weekly high, before settling around 1.7185. The pair was purely driven by Pound's move on BOE's announcements, rising first as the bank left its economic policy on-hold, and falling back later, as Carney hinted easing for their upcoming August meeting.

GBP/CAD levels to watch

“The rally stalled once again around a strongly bearish 20 DMA, suggesting that in the longer run, the upside remains well limited. In the shorter term, the 1 hour chart shows that the price is holding above a bullish 20 SMA, now around 1.7130, providing an immediate short term support, whilst the technical indicators have erased overbought readings, and head modestly higher within positive territory,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price is barely above a slightly bullish 20 SMA, whilst the Momentum indicator remains flat around its 100 level, and the RSI hovers around 55, overall with a limited upward potential. A break below 1.7130, should see the cross resuming its decline, with scope to test 1.7020 this Friday.”

Support levels: 1.7130 1.7075 1.7020. Resistance levels: 1.7240 1.7300 1.7360.