Wednesday, October 7, 2015

GBP/CAD recovers slightly from 3-month lows

FXStreet (Córdoba) - GBP/CAD advanced up to 1.9918 on Tuesday, although it gave up most of its intraday gains and closed a few pips above its daily opening as the loonie was supported by a sharp advance in oil prices.

Oil surges to 5-week high

Crude oil prices surged, with WTI up to near $49.00 a barrel, levels not seen since August, after EIA estimate showed US oil production fell by 120,000 barrels per day in September.

GBP/CAD technical perspective

“As for the technical picture of the cross, the 1 hour chart shows that the price is down to its 20 SMA, whilst the technical indicators have turned south, but are still holding above their mid-lines”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the cross held below a bearish 20 SMA, whilst the RSI indicator turned lower after a limited upward corrective movement near oversold levels, and the Momentum indicator consolidates in negative territory, all of which maintains the risk towards the downside”.

Support levels: 1.9800 1.9765 1.9720. Resistance levels: 1.9870 1.9910 1.9960.
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