GBP/CAD climbs above 1.9000

Pound's strength dominated the forex board, driving the GBP/CAD cross roughly 350 pips higher daily basis. The British currency outperformed its major rivals on diminishing chances of a Brexit, according to the latest polls, whilst the CAD fell amid easing oil prices.

The black gold retreated from a fresh yearly high of $48.93 a barrel, following news that US stockpiles unexpectedly rose by 1.3 million barrels to 541.3 million barrels in the week ended May 13, according to the Energy Information Administration report. The good news were that refined products stockpiles fell by more than crude-oil inventories rose.

GBP/CAD technical perspective

“Now trading at a fresh 2-month high around 1.9000, level last seen mid March, the 1 hour chart shows that the technical indicators maintain their bullish slopes within extreme overbought territory, whilst the 20 SMA turned almost vertical well below the current level, with no signs of a soon-to-come downward move”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators are giving some signs of easing upward strength, but remain in extreme levels, suggesting the rally may extend after some consolidation, on a clear extension beyond the 1.9000 psychological figure”.

Support levels: 1.8960 1.8900 1.8840. Resistance levels: 1.9010 1.9070 1.9135.