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GBP/CAD trims half of daily losses

FXStreet (Córdoba) - The GBP/CAD cross plunged during the first half of the day as the Pound shed nearly 200 pips following the release of weaker-than-expected UK inflation data. The cross fell down to 1.9729 a fresh 3-month low, but recovered some ground in the US afternoon following a sharp decline in oil prices.

WTI crude oil futures fell for a second day in-a-row as the International Energy Agency released a forecast saying that the market will remain oversupplied through all 2016.

GBP/CAD technical perspective

“As for the technical picture, the 1 hour chart shows that the 20 SMA presents a bearish slope around 1.9910, whilst the technical indicators have lost upward potential after bouncing from oversold levels, and remain well below their mid-lines”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the 20 SMA caps the upside around 1.9875 whilst the Momentum indicator has turned south around its mid-line and the RSI indicator hovers around 46, maintaining the pressure towards the downside”.

Support levels: 1.9830 1.9780 1.9730. Resistance levels: 1.9879 1.9910 1.9950.

Oil reverses gains and settles lower

Crude oil prices ended lower on Tuesday, with West Texas Intermediate crude oil futures advancing intraday up to 48.41 before turning south and ending the day around $46.75 a barrel.
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