GBP/CAD corrects lower from 4-month peak

By FXStreet FXStreet (Córdoba) – Oil prices’ recovery drove the GBP/CAD cross lower this Tuesday, with the pair falling down to 2.0610, also on a weakening pound. At time of writing, the pair is trading at 2.0661, 0.60% below its opening price.

Overall, GBP/CAD is correcting, after advancing roughly 1,100 pips in the past two weeks and posting a 4-month peak of 2.0948 last Friday, with the last day’s pullback representing a little more than the 23.6% retracement of such advance.

GBP/CAD technical view

“The downward momentum has eased in the short term, as the technical indicators are posting tepid recoveries from oversold levels, albeit the price remains well below a bearish 20 SMA, currently around 2.0740”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the Momentum indicator heads strongly lower below the 100 level, whilst the RSI turned flat around 47, maintaining anyway the risk towards the downside”.

Support levels: 2.0610 2.0550 2.0500. Resistance levels: 2.0690 2.0740 2.0790.
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Source:: FX Street