GBP/CAD drops to test January lows

FXStreet (Córdoba) – GBP/CAD was recovering ground but the rally in crude oil prices boosted the loonie pushing the pair toward January lows. It bottomed at 2.0144, marginally below last week lows and then rebounded modestly. It was trading at 2.0205/20, 150 pips below yesterday’s closing price.

GBP/CAD technical outlook

“Back below 2.0270, the 61.8% retracement of its latest bullish run, the intraday picture is bearish, as in the 1-hour chart, the 20 SMA turned south above the current level, now around 2.0265, while the technical indicators have bounced some from oversold territory, but remain well below their mid-lines”, said Valeria Bednarik, Chief Analyst at FXStreet.

According to her, the 4-hours chart shows the 20-SMA maintaining a strong bearish slope above the current level and a few pips below the mentioned Fibonacci resistance.

“As long as below 2.0270, the risk remains towards the downside, particularly if oil’s prices continue advancing during the upcoming Asian session”, concluded Bednarik.

GBP/CAD was recovering ground but the rally in crude oil prices boosted the loonie pushing the pair toward January lows. It bottomed at 2.0144, marginally below last week lows and then rebounded modestly. It was trading at 2.0205/20, 150 pips below yesterday’s closing price.

(Market News Provided by FXstreet)