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GBP/CAD recovers above 2.000

FXStreet (Córdoba) - GBP/CAD regained the 2.000 level during the American afternoon, underpinned by a strong GBP rally and a weaker CAD amid falling oil prices following the release of the US EIA report.

According to official data, US oil stockpiles increased by 3.073 million in the week ended Oct 2, exceeding expectations of a 2.200 million barrels, leading to a $2 decline in WTI crude after trading as high as $49.69 a barrel earlier in the day.

GBP/CAD technical perspective

“As for the technical picture, the 1 hour chart shows that the price has accelerated well above its 20 SMA, whilst the technical indicators maintain their strong upward slopes near overbought levels”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the cross is also above its 20 SMA, for the first time this month, whilst the technical indicators head higher almost vertically in positive territory, supporting a continued advance for this Thursday”.

Bednarik also places short-term supports at 1.9950, 1.9895 and 1.9850 while she locates resistance levels at 2.0025, 2.0090 and 2.0160.

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