GBP/CAD hovers around 2.0200

By FXStreet FXStreet (Córdoba) – The GBP/CAD cross posted a limited advance this Monday on a weaker Canadian dollar, given that oil prices sunk to fresh 2-month lows below $44.00 a barrel.

Oil prices took a hit from a Goldman Sachs report, warning of downward risks for oil prices through 2015, as stockpiles remain near record historic highs.

GBP/CAD technical perspective

“The cross hovers around the 2.0200 level, and the 1 hour chart shows that the price is above its 20 SMA, whilst the technical indicators aim slightly higher in positive territory, but with limited upward momentum”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price stands a few pips above a flat 20 SMA, whilst the technical indicators also present a limited upward strength above their mid-lines, limiting chances of a strong decline at the time being. The cross has a strong static support in the 2.0135 price zone, and it would take a clear break below it to confirm a downward breakout during the upcoming sessions”.

Support levels: 2.0190 2.0135 2.0080. Resistance levels: 2.0240 2.0285 2.0340.
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Source:: FX Street