FXStreet (Córdoba) – The GBP/CAD cross plunged on Pound weakness, declining to a 2-week low of 2.0001, before finally finding some buying interest. Investors were caught off-guard when the Bank of England downgraded its inflation and growth outlooks, and quickly unwind Pound buying positions, triggering a sell-off in the British currency.
The Canadian dollar also weakened intraday as oil prices fell for a second day in-a-row, with WTI futures trading near $ 45.00 a barrel by the end of the US session, but the market was all about the Pound’s weakness.
GBP/CAD technical perspective
“Technically, the 1 hour chart shows that the price has extended well below a bearish 20 SMA, whilst the technical indicators have lost their bearish strength in oversold territory, still not confirming an upcoming upward correction”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price has extended far below its 20 SMA while the technical indicators continue heading lower well into negative territory, maintaining the risk towards the downside”.
Support levels: 2.0000 1.9960 1.9910. Resistance levels: 2.0060 2.0100 2.0165.
(Market News Provided by FXstreet)