GBP/CAD falls on weaker pound

By FXStreet FXStreet (Córdoba) – Led by a continued decline in the pound, the GBP/CAD cross fell down to 2.0615, having managed to bounce slightly by the end of the day. At time of writing, the pair is trading at 1.0645, down 0.6% on the day.

GBP/CAD maintains a short term negative tone, as the price remains near the two-week low of 2.0600 scored last Thursday.

GBP/CAD technical view

“The 1 hour chart shows that the price consolidates in a tight range near the lows, while the 20 SMA heads sharply lower well above the current level, and that the technical indicators remain horizontal near oversold levels”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the Momentum indicator was rejected by its mid-line, while the RSI indicator presents a tepid bearish slope around 38, as the price extended below 2.0690, the 23.6% retracement of the latest bullish run. The level is now the main resistance and the bearish bias will prevail as long as the level contains the upside”.

Support levels: 2.0600 2.0550 2.0510. Resistance levels: 2.0690 2.745 2.0790.
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Source:: FX Street