GBP/CAD plunges, but holds above 2.0000

By FXStreet FXStreet (Córdoba) – The GBP/CAD cross plunged as the pound weakened following BoE members’ comments suggesting a delay in rate hikes, and the CAD advanced on soaring oil prices.

Crude oil prices posted their largest intraday advance in over 3-weeks as tensions in the Middle East boosted commodities’ prices. US sweet, light crude soared to $43.44 a barrel in the American afternoon, holding nearby by Wall Street’s close.

GBP/CAD technical perspective

“Short term, the 1 hour chart shows that the price is bouncing from a low set at 2.0011, but that the technical indicators are still in oversold territory, unable to confirm a firmer upward corrective move. In the same chart, the 20 SMA has accelerated its decline, but stands well above the current level, around 2.0140”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators are turning higher in oversold territory, rather suggesting some downside exhaustion than confirming an upward corrective movement ahead”.

Support levels: 2.0010 1.9955 1.9910. Resistance levels: 2.0080 2.0140 2.0185.
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Source:: FX Street