GBP/CAD snaps 5-day losing streak

By FXStreet FXStreet (Córdoba) – The GBP/CAD cross managed to recover some ground this Monday, after being on the selling side for five days in-a-row.

The cross surged up to the current 2.0335 region, as oil prices gave up some ground, following news coming from Iraq, as the country’s oil ministry said its oil output had reached a record high in December, spooking investors and reviving concerns over a heavily oversupplied market. GBP/CAD is currently trading at 1.0322, recording a 0.73% gain on the day.

GBP/CAD technical view

“Now trading around the 61.8% retracement of its latest daily run, the 1 hour chart presents a mild positive tone, with the price above a bullish 20 SMA and the technical indicators aiming to recover their bullish tone after approaching their mid-lines”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price retreated from a sharply bearish 20 SMA, now capping the upside around 2.0320, while the Momentum indicator heads higher in neutral territory and the RSI indicator turns south around 42, limiting chances of further advances. Nevertheless, if crude slips back below $30.00 a barrel, the pair can continue advancing this Tuesday.”

Support levels: 2.0245 2.0180 2.0135 Resistance levels: 2.0335 2.0355 …read more

Source:: FX Street