GBP/CAD reverses weekly gains and breaks below 2.0000

FXStreet (Córdoba) – The GBP/CAD cross trades at its lowest in nearly a month, having broken below the 2.0000 figure by the end of the day as the pound weakened broadly following disappointing UK construction data.

Having reversed early weekly gains, GBP/CAD is currently trading at 1.9950, recording a 0.92% loss on the day.

GBP/CAD technical perspective

“As for the technical picture of the cross, the 1 hour chart shows that the technical indicators are posting limited bounces from extreme oversold readings, but are not yet able to support an upward correction, whilst the 20 SMA has turned sharply lower well above the current level”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators are also bouncing from oversold readings, but remain far from suggesting a stronger recovery, moreover it the cross remains below the 2.0000 mark”.

Support levels: 1.9920 1.9870 1.9825. Resistance levels: 2.0000 2.0055 2.0110.

The GBP/CAD cross trades at its lowest in nearly a month, having broken below the 2.0000 figure by the end of the day as the pound weakened broadly following disappointing UK construction data.

(Market News Provided by FXstreet)