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GBP/CAD reaches 2.0300 as oil weighs on CAD

FXStreet (Córdoba) - The GBP/CAD cross extended its rally up to 2.0313 on Tuesday, as plummeting oil prices led to a sharp decline in the Canadian dollar that outpaced pound's weakness. The cross ended the day around 2.0300, recording a 0.57% gain.

Oil prices plunged with West Texas Intermediate crude oil futures trading as low as $42.57 a barrel in the American afternoon, on speculation US stockpiles have growth during last week, for the fifth consecutive week.

GBP/CAD technical perspective

“The short term picture favors further advances, given that the price is now well above a bullish 20 SMA, whilst the technical indicators have lost their early strength, but hold near overbought levels”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the Momentum indicator is beginning to look exhausted towards the upside, but the RSI indicator maintains its bullish slope near 67, as the price advanced above its 20 SMA, in line with further gains on a break above 2.0325, last week high”.

Support levels: 2.0280 2.0240 2.0190. Resistance levels: 2.0325 2.0360 2.0410.

Oil falls nearly 2% and settles at 2-month low

Crude oil prices accelerated the decline, with West Texas Intermediate futures falling all the way to a fresh 2-month low of $42.57 a barrel.
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