GBP/CAD climbs to 2-month highs

By FXStreet FXStreet (Córdoba) – The GBP/CAD cross soared on the back of oil’s slump, which resulted in the Canadian dollar plummeting against all of its major rivals and sending GBP/CAD to 2-month highs.

The rally extended to 1.0375, through a major resistance level, as selling interest had contained advances around 2.0350 ever since late September. At time of writing, GBP/CAD is trading at 2.0360, recording a 0.85% gain on Monday.

GBP/CAD technical perspective

“The technical picture favors a continued advance, as the price has extended well above a bullish 20 SMA, while the technical indicators have resumed their advances, despite being in overbought territory”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the Momentum indicator is retreating strongly from overbought levels, while the RSI indicator consolidates around 71. Nevertheless, with the price posting higher highs and extending above a bullish 20 SMA, the risk remains towards the upside for this Tuesday”.

Support levels: 2.0315 2.0280 2.0235. Resistance levels: 2.0360 2.0400 2.0445.
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Source:: FX Street