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