GBP/CAD hovers near 8-month lows

By FXStreet Following a failed recovery attempt, GBP/CAD came under renewed pressure and fell back to the 1.9270 area, holding just a few pips above yesterday’s 8-month low of 1.9262.

Even though the loonie weakened at the beginning of the New York session, tracking oil prices, a late recovery and broad GBP weakness put the cross back on the defensive. WTI futures reversed early gains and settled 4.6% down at $31.87 a barrel after Iran said the plan to freeze output was ‘ridiculous’.

GBP/CAD technical view

GBP/CAD ends the day near 0.54% lower at 1.9285, and the technical picture supports a bearish continuation as indicators head lower below their mid-lines in 1 hour charts, while the pair trades below bearish 20-SMA, reinforcing the view. In 4 hour charts, the bearish potential is stronger, but oversold conditions suggest a consolidation phase may precede another leg lower.

Support levels: 1.9250 1.9220 1.9200. Resistance levels: 1.9490 1.9550 1.9605.
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Source:: FX Street