GBP/CAD recovers from below 2.0000 and cuts losses

By FXStreet The GBP/CAD cross fell back towards the bottom of this week’s range and posted a daily low of 1.9887 before plummeting oil prices put the Canadian dollar under pressure, resulting in a sharp recovery of the cross, back above the 2.0000 region.

GBP/CAD climbed to a session high of 2.0083 and it was last trading at 2.0075, still 0.19% below its opening price.

GBP/CAD technical view

“Technically, the 1 hour chart shows that the price recovered above a still bearish 20 SMA, while the technical indicators are losing upward momentum around their mid-lines, having already corrected oversold readings”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the 20 SMA caps the upside around 2.0140, while the technical indicators have bounced from near oversold readings, and head higher below their mid-lines. Technical readings favor the downside, yet plummeting oil prices can lead to further gains, particularly if the commodity breaches the $30.00 level once again”.

Support levels: 2.0050 1.9990 1.9935. Resistance levels: 2.0090 2.0140 2.0185.
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Source:: FX Street