FXStreet (Córdoba) – The GBP/CAD cross soared on the back of oil’s slump, which resulted in the Canadian dollar plummeting against all of its major rivals and sending GBP/CAD to 2-month highs.
The rally extended to 1.0375, through a major resistance level, as selling interest had contained advances around 2.0350 ever since late September. At time of writing, GBP/CAD is trading at 2.0360, recording a 0.85% gain on Monday.
GBP/CAD technical perspective
“The technical picture favors a continued advance, as the price has extended well above a bullish 20 SMA, while the technical indicators have resumed their advances, despite being in overbought territory”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the Momentum indicator is retreating strongly from overbought levels, while the RSI indicator consolidates around 71. Nevertheless, with the price posting higher highs and extending above a bullish 20 SMA, the risk remains towards the upside for this Tuesday”.
Support levels: 2.0315 2.0280 2.0235. Resistance levels: 2.0360 2.0400 2.0445.
(Market News Provided by FXstreet)