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GBP/CAD falls sharply as loonie strengthens

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 9, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The GBP/CAD cross erased all of its weekly gains and plummeted down to 1.8817 as oil soared, underpinning the Canadian dollar.

    The Canadian dollar also benefited from BoC's decision of leaving rates unchanged in its latest meeting, with Gov Poloz sounding mostly confident about to current economic situation.

    GBP/CAD technical outlook

    “As for the cross, the short term picture shows some short term consolidation going on near the lows, with the 1 hour chart showing that the 20 SMA has accelerated its decline far above the current level, whilst the technical indicators are aiming slightly higher within oversold territory,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators have lost the downward strength, but remain below their mid-lines, whilst the price remains well below its 20 SMA, all of which suggesting the decline may continue this Thursday.”

    Support levels: 1.8805 1.8745 1.8680. Resistance levels: 1.8920 1.8990 1.9035.
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