GBP/CAD clings to important daily gains

By FXStreet FXStreet (Córdoba) – Weakening oil prices helped the GBP/CAD cross to recover some ground, while the pound was among the best performers in the FX space.

GBP/CAD climbed nearly 300 pips throughout the day and peaked at 2.0175 before finding resistance and retreating to currently trade around 2.0100, up 0.98% on the day.

GBP/CAD technical perspective

“Technically, the short term picture presents a bullish bias, as in the 1 hour chart, the price is now above a bullish 20 SMA, whilst the technical indicators head higher near overbought levels after a limited downward corrective move”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price is above a horizontal 20 SMA, but the technical indicators head lower right below their mid-lines, having been unable to advance beyond them this Monday, suggesting the pair may resume its decline, particularly if oil prices recover the lost ground”.

Support levels: 2.0090 2.0040 1.9990. Resistance levels: 2.0170 2.0240 2.0285.
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Source:: FX Street