GBP/CAD bounces off 7-month low

By FXStreet The GBP/CAD cross bounced from a 7-month low set at 1.9501, as crude oil prices retreated on the back of the US EIA report, which showed an increase in inventories of 2.1 million barrels last week, while stockpiles reached their highest in over 84 years. The news is clearly indicating that an output freeze at current levels, will do little against the worldwide glut that keeps the commodity under pressure ever since last year.

A limited recovery in the Pound also helped the cross that anyway remains well into the red weekly basis. GBP/CAD is currently trading at 1.9680, up 0.75% on the day.

GBP/CAD levels to watch

“As for the short term, the 1 hour chart shows that the price has been consolidating above a mild bullish 20 SMA for most of the American session, while the technical indicators have lost upward strength within bullish territory”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the upside seems quite limited, given that the price is well below a bearish 20 SMA, currently around 1.9760, while the technical indicators have corrected extreme oversold readings, but turned flat well below their mid-lines”.

Support levels: 1.9640 1.9590 1.9545. Resistance …read more

Source:: FX Street