GBP/CAD climbs to test 2.0200

By FXStreet FXStreet (Córdoba) – GBP/CAD climbed to a fresh 4-day high of 2.0199 as the pound staged a broad recovery, having already erased most of last week losses that were incurred on the back of a dovish BoE rhetoric.

Also, falling oil prices pressured the Canadian dollar, as the black gold plummeted following the US API report, showing that US stockpiles rose by 6.3 million barrels last week.

GBP/CAD technical view

“The short term picture for the cross shows that in the 1 hour chart, the price has advanced firmly above a bullish 20 SMA, while the technical indicators are losing their upward strength near overbought levels”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price has extended further above a now bullish 20 SMA, whilst the technical indicators are partially losing their upward momentum well into positive territory, but stay from suggesting a downward corrective move ahead”.

Bednarik locates next support levels at 2.0165, 2.0110 and 2.0070, while she places resistances at 2.0220, 2.0285 and 2.0340.
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Source:: FX Street