GBP/CAD recovers from weekly lows

By FXStreet The GBP/CAD cross extended its decline down to 1.8478 this Thursday, but trimmed most of its daily losses to close slightly lower around 1.8546, with volatile moves in crude oil prices leading the way.

The black gold advanced to fresh yearly highs at the beginning of the day as the International Energy Agency raised its 2016 global oil demand growth forecast to 1.2 million barrels per day from 1.16 million in April, but then retreated on news that US stockpiles surged at the Oklahoma delivery hub during the week to May 10.

GBP/CAD technical view

“The cross maintains its negative short term outlook, as it posted a lower low and a lower high daily basis, while in the 4 hours chart, the price remained below a bearish 20 SMA, as the indicator head modestly lower well below their mid-lines,” said Valeria Bednarik, chief analyst at FXStreet. “Still unable to move too far away from its 200 EMA in the mentioned time frame, additional declines below the mentioned daily low should see the cross finally capitulating and extending its decline towards the 1.8400 region and beyond.”
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Source:: FX Street