FXStreet (Córdoba) – The GBP/CAD cross plummeted on Tuesday as the Canadian dollar strengthened helped by a recovery in oil prices, whilst the pound was among the worst performers in the FX market with moves exaggerated by thin volume.
Having bottomed out at a 3-week low of 2.0459, GBP/CAD ends the day just below 2.0500, recording a 0.92% loss.
GBP/CAD technical perspective
“The 4 hours chart shows that the price has bounced from its 200 EMA, but remains below a key Fibonacci level, at 2.0525 the 38.2% retracement of its latest bullish run, while the technical indicators have turned flat in oversold territory and the 20 SMA has accelerated its decline far above the current level”, said Valeria Bednarik, chief analyst at FXStreet. “Further declines below the mentioned 200 EMA, currently at 2.0450, should see the cross extending its decline down to the next Fibonacci support, the 50% retracement of the same decline at 2.0400.”
Support levels: 2.0450 2.0400 2.0360. Resistance levels: 2.0525 2.0570 2.0620.
(Market News Provided by FXstreet)