GBP/CAD bounces after hitting fresh monthly lows sub-2.0000

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 27, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - The GBP/CAD cross extended its recent slide to a fresh monthly low of 1.9994 dragged down by a stronger CAD, which was supported by gaining oil. The pair however, bounced from the mentioned low, and trades around 2.0070 as the day ends.

    GBP/CAD technical view

    “The bearish tone prevails both long and short term, as in the 1 hour chart, the price remained contained by a bearish 20 SMA for most of the day, whilst the technical indicators have resumed their declines well below their mid-lines after correcting oversold conditions”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the Momentum indicator has accelerated its decline below the 100 level, whilst the RSI also heads south around 34 and the 20 SMA maintains a bearish slope above the current level”.

    Support levels: 2.0035 1.9994 1.9980. Resistance levels: 2.0140 2.0210 2.0270.
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