GBP/CAD trims half of daily losses

FXStreet (Córdoba) – The GBP/CAD cross plunged during the first half of the day as the Pound shed nearly 200 pips following the release of weaker-than-expected UK inflation data. The cross fell down to 1.9729 a fresh 3-month low, but recovered some ground in the US afternoon following a sharp decline in oil prices.

WTI crude oil futures fell for a second day in-a-row as the International Energy Agency released a forecast saying that the market will remain oversupplied through all 2016.

GBP/CAD technical perspective

“As for the technical picture, the 1 hour chart shows that the 20 SMA presents a bearish slope around 1.9910, whilst the technical indicators have lost upward potential after bouncing from oversold levels, and remain well below their mid-lines”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the 20 SMA caps the upside around 1.9875 whilst the Momentum indicator has turned south around its mid-line and the RSI indicator hovers around 46, maintaining the pressure towards the downside”.

Support levels: 1.9830 1.9780 1.9730. Resistance levels: 1.9879 1.9910 1.9950.

The GBP/CAD cross plunged during the first half of the day as the Pound shed nearly 200 pips following the release of weaker-than-expected UK inflation data. The cross fell down to 1.9729 a fresh 3-month low, but recovered some ground in the US afternoon following a sharp decline in oil prices.

(Market News Provided by FXstreet)