GBP/CAD off lows, but down for the day

By FXStreet FXStreet (Córdoba) – Once again, the GBP/CAD cross wavered alongside with oil prices, falling down to 2.0498 as the commodity recovered, and later recovering more than 100 pips as the black gold fell back below $30.00 a barrel. GBP/CAD was last trading at 2.0625, down 0.50% on the day.

Following a near 3% bounce earlier in the day, WTI crude futures fell from a daily high of $31.33 a barrel, turning negative in the day and currently trading around $29.75 a barrel.

GBP/CAD technical view

“As for the technical picture for the cross, the 1 hour chart shows that the price briefly fell below the 38.2% retracement of the latest bullish run before bouncing, but is still below a pretty bearish 20 SMA, while the technical indicators have recovered from oversold readings, but remain below their mid-lines”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the lack of a certain directional strength prevails, with the pair moving back and forth within Fibonacci levels, and the technical indicators heading higher from near oversold territory, but also below their mid-lines. Renewed selling pressure below the mentioned 38.2% retracement around 2.0530, should lead to fresh lows near 2.0400, the 50% …read more

Source:: FX Street