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GBP/CAD falls toward 2.0000

FXStreet (Córdoba) - The GBP/CAD plunged to a fresh 4-week low of 2.0036 and closed the day a few pips above it, with the Canadian dollar’s strength leading the decline in the cross. WTI crude oil futures surged to a daily high of $47.07 a barrel before plunging below the 45.00 level, but the CAD held to most of its intraday gains against the greenback, even despite the local manufacturing PMI contracted to 48.6 in September, from the previous 49.4.

GBP/CAD technical view

“Short term, the 1 hour chart shows that the 20 SMA heads strongly lower and acts as an immediate intraday resistance around 2.0080, whilst the Momentum indicator heads lower below the 100 level and the RSI hovers around 36, all of which supports a continued decline”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the RSI is losing its bearish strength, but remains in oversold territory, whilst the Momentum indicator aims slightly higher well into negative territory, and the 20 SMA turned lower far above the current level. The pair may correct higher now but it will take a steady recovery above 2.0145 to see a change in the ongoing bearish trend”.

Support levels: 2.0035 1.9980 1.9945. Resistance levels: 2.0090 2.0145 2.0200.

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