GBP/CAD consolidates near 1-week highs

By FXStreet The GBP/CAD cross edged higher on Wednesday, with the Canadian dollar pressured by falling oil prices, while the pound finally catch a bid.

Crude oil prices fell to fresh monthly lows despite US stockpiles decreased sharply, as the EIA reported a decline of 0.754M barrels last week, against expectations of a 3.650M build.

The cross advanced towards a fresh weekly high of 2.0251 before easing somewhat, still trading within its recent range, currently at 2.0210, 0.72% above its opening price.

GBP/CAD technical perspective

“Short term, the 1 hour chart shows that the technical indicators have lost upward steam, but are still above their mid-lines, while the 20 SMA heads strongly higher well below the current level”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators head sharply higher above their mid-lines, as the price extends above a mild bullish 20 SMA, supporting some limited advances towards the 2.0310 region, where selling interest has surged ever during the last three weeks”.

Support levels: 2.0185 2.0130 2.0060. Resistance levels: 2.0250 2.0310 2.0360.
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Source:: FX Street