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GBP/CAD continues to fall as oil’s comeback helps the loonie

FXStreet (Córdoba) - The GBP/CAD cross ended the day with losses, driven by Canadian dollar's recovery in sync with crude oil’s sharp advance, as the commodity soared above $48.00 a barrel in the US, on concerns about a sudden reduction in oil production.

GBP/CAD technical view

“As for the cross, the short term picture is now bearish, as the price extended below its negative 20 SMA, whilst the technical indicators head south below their mid-lines”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators also head lower in negative territory, whilst the 20 SMA remains horizontal above the current price. The daily low has been established at 2.0104, with a break below the level confirming additional declines for this Wednesday”.

Bednarik locates next support levels at 2.0100, 2.0040 and 1.9970, while she places resistances at 2.0160, 2.0200 and 2.0245.

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