FXStreet (Córdoba) – The GBP/CAD cross recovered ground on Wednesday and moved away a 2-week low of 2.0012 scored the previous day, boosted by pound’s increased demand following the upward review of the 2016 GDP forecast.
GBP/CAD reached a daily peak of 2.0147 and despite a shallow pullback, the pair managed to resume the upside to currently trade at 2.0115, 0.27% above its opening price. The cross however, traded within the lower half of Tuesday’s range, and the intraday recovery seems not enough to deny additional declines.
GBP/CAD technical view
“Short term, the 1 hour chart shows that the price is above a bullish 20 SMA, while the technical indicators are losing their upward strength well above their mid-lines”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, however, the technical indicators have barely corrected from extreme oversold levels and remain well below their mid-lines, while the 20 SMA heads strongly lower well above the current level, offering a dynamic resistance around 2.0180 the level to overcome to confirm a stronger advance before the weekend”.
Bednarik sees next supports at 2.0080, 2.0010 and 1.9955, while she places resistances at 2.0140, 2.0180 and 2.0230.
(Market News Provided by FXstreet)