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GBP/CAD hovers below 1.8200 after posting 15-month lows

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 14, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The GBP/CAD cross closed the day unchanged, a few pips below the 1.8200 level, having, however, managed to post a fresh multi-month low of 1.8098 earlier in the day.

    Oil prices weakened, weighing on the CAD, but the Pound was also underperforming, again affected by Brexit fears.

    GBP/CAD technical viewpoint

    “The daily chart shows that the pair has posted a second doji in-a-row, first evidence suggesting the downward momentum may be exhausted, and therefore that the cross may correct higher in the nearest term,” said Valeria Bednarik, chief analyst at FXStreet. “Short term, the 1 hour chart for the cross presents a neutral stance, as the technical indicators have turned horizontal slightly above their mid-lines, whilst the price keeps hovering around a horizontal 20 SMA. In the 4 hours chart, the 20 SMA extended its decline and stands around 1.8248, providing an immediate dynamic resistance, whilst the technical indicators have bounced from near oversold readings, but remain within negative territory, not enough to confirm an upward movement just yet.”

    Support levels: 1.8175 1.8120 1.8060. Resistance levels: 1.8240 1.8295 1.8335.
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