FXStreet (Córdoba) - Oil strength sent the GBP/CAD cross towards the base of its recent range, down to a daily low of 2.0190 as crude surged on Saudi Arabia's government statement, pledging to do whatever it takes to stabilize the oil market.
The cross remains within its recent range, but the bearish risk has increased as the price challenges the 2.0200 figure. At time of writing, GBP/CAD is trading at 2.0220, 0.29% lower on the day.
GBP/CAD technical perspective
“Short term, the 1 hour chart shows that the price has accelerated below a strongly bearish 20 SMA, whilst the technical indicators head strongly lower well into negative territory”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the 20 SMA tuned lower above the current level, offering a strong intraday dynamic resistance around 2.0280, while the technical indicators maintain clear bearish slopes in negative territory. In this timeframe however, the 200 EMA remains below the current level, around 2.0185, with a break below it required to confirm a more sustainable decline towards the 2.000 figure”.
Support levels: 2.0185 2.0130 2.0070. Resistance levels: 2.0280 2.0325 2.0370.
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