FXStreet (Córdoba) – The GBP/CAD cross recovered ground on Wednesday, as the loonie weakened in tandem with oil prices that turned sharply lower on news US stockpiles surged for a sixth week in a row.
The cross however, stalled short from its weekly high, and retreated slightly from a daily high set at 2.0263. At time of writing, the pair is trading at 2.0240, recording a 0.53% gain on the day.
GBP/CAD technical perspective
“Short term, the 1 hour chart technical view is in line with a downward corrective move, as the technical indicators are retreating from overbought levels. Nevertheless, and in the same chart the 20 SMA turned higher well below the current level, limiting chances of a stronger decline”, said Valeria Bednarik, analyst at FXStreet. “In the 4 hours chart, however, the pair maintains a neutral stance, with the price now above a horizontal 20 SMA and with the Momentum indicator hovering around its mid-line, showing no directional strength”.
Support levels: 2.0200 2.0160 2.0100. Resistance levels: 2.0265 2.0310 2.0355.
(Market News Provided by FXstreet)