GBP/CAD clings to 1.8200

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 13, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    The GBP/CAD cross extended its decline, posting a low of 1.8117 early in the US session, after the Bank of Canada left its monetary policy unchanged, with the overnight rate steady at 0.5%.

    The accompanying statement showed that growth in Canada during Q1 “appears to have been unexpectedly strong,” leading to a sharp advance of the local currency. Weaker oil prices however, sent the commodity-related currency down during the US afternoon, helping the GBP/CAD cross to trim most of its daily losses.

    GBP/CAD technical perspective

    “Technically, the 1 hour chart shows that the late recovery was not enough to change the dominant bearish bias, as the price is stuck around a flat 20 SMA, whilst the technical indicators are unable to rally beyond their mid-lines,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price is well below a bearish 20 SMA, whilst the technical indicators remain near oversold levels, but with no clear directional strength, all of which maintains the risk towards the downside.”

    Support levels: 1.8175 1.8120 1.8060. Resistance levels: 1.8255 1.8310 1.8380.
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