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GBP/CAD ends the day little changed above 2.0520

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 5, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - The GBP/CAD cross traded within its weekly range and finished the day virtually unchanged at the 2.0520 zone, despite weakness seen in the Canadian dollar.

    The loonie fell to its lowest in 12 years against the greenback weighed by poor local data. Canada Industrial Product Price in November fell by 0.2%, whilst the raw material price index plunged to -0.4% in the same month. Also, weakening crude oil prices affected the CAD as WTI futures fell below $36.00 a barrel in the American afternoon.

    GBP/CAD technical view

    “GBP/CAD ends the day a handful of pips below the 2.0540 level, the 38.2% retracement of the December monthly advance. In the short term, the 1 hour chart shows that the price holds above its 20 SMA, while the technical indicators have turned slightly lower, but remain above their mid-lines, opening doors for additional gains on a break above the mentioned Fibonacci resistance”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators are heading higher above their mid-lines, while the price is now above a bearish 20 SMA, something that at least should keep the downside limited”.

    Support levels: 2.0470 2.0420 2.0360. Resistance levels: 2.0540 2.0590 2.0630.
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