GBP/CAD hits fresh lows for the day

By FXStreet FXStreet (Córdoba) – Wild swings in oil prices and the BoC decision to stay on hold led the way for the GBP/CAD cross on Wednesday.

GBP/CAD surged to 2.0794 as the commodity fell to fresh multi-year lows, but then plummeted to fresh daily lows of 2.0550 as the loonie benefited from a less dovish than expected BoC statement and a slight recovery in crude by the end of the session.

Crude remained in the eye of the storm, as West Texas Intermediate crude lost more than 6% $26.20 a barrel ahead of the release of the US API stockpiles report, expected to reflect an increase in inventories of 2.75 million barrels.

GBP/CAD technical view

“GBP/CAD is about to close down for a third day in-a-row, and below its daily 20 SMA for the first time in almost two weeks. Short term, the technical picture is now favoring additional declines, with the price nearing 2.0560, a Fibonacci support, and the technical indicators heading south near oversold territory”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators head sharply lower after faltering around their mid-lines, while the price is far below its 20 SMA. Nevertheless, the upcoming …read more

Source:: FX Street