The GBP/CAD cross was led by pound’s movements, recovering some ground as the UK currency corrected higher.
The loonie on the other hand, strengthened briefly tracking higher oil prices but then retreated. Oil prices traded flat below $30.00 a barrel, with the Canadian dollar was left practically unchanged intraday. GBP/CAD is currently trading at 1.8810, up 0.46% on the day, having posted a fresh 8-month low of 1.8721 at the weekly opening.
GBP/CAD technical view
The cross is still far from signaling a reversal in its dominant bearish trend, as in the daily chart, the technical indicators remain in oversold territory.
“The 1 hour chart shows that the price is a few pips above a horizontal 20 SMA, whilst the technical indicators have turned south, but remain above their mid-lines,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, an intraday recovery met selling interest around a bullish 20 SMA, currently at 1.8900, while the technical indicators have corrected extreme oversold readings, but lost upward steam well below their mid-lines, suggesting the latest upward move was barely corrective, and that the pair may resume its decline during the upcoming sessions”.
Support levels: 1.8780 1.8730 1.8680. Resistance levels: 1.8840 1.8900 1.8960.
(Market News Provided by FXstreet)