FXStreet (Córdoba) – The GBP/CAD cross failed to recover ground and closed in the red, as a strong comeback in oil prices helped the Canadian dollar advancing against most of its major rivals.
The cross traded as high as 2.0748 as the pound received some attention at the beginning of the day, but then turned lower and fell to a 2-week low of 2.0573 to finally close around 2.0590, as the Canadian dollar jumped in tandem with oil prices after data showed US oil stockpiles plummeted last week.
According to the EIA report, crude inventories fell by 5.9 million barrels in the week ending December 18, against expectations of 1 million gain.
GBP/CAD technical perspective
“Technically speaking the cross is getting closer to the 38.2% retracement of its latest daily advance at 2.0525, the immediate support. For the upcoming sessions, he 1 hour chart presents a strong bearish tone, as the price is not only well below its moving averages, but also pressuring the daily low, while the technical indicators have accelerated their declines below their mid-lines”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the early advance was contained by a bearish 20 SMA while the technical indicators have resumed their declines below their mid-lines, in line with further declines during the upcoming days”.
Support levels: 2.0525 2.0465 2.0410. Resistance levels: 2.0635 2.0690 2.745.
(Market News Provided by FXstreet)