GBP/CAD oscillates in a wide range tracking oil moves

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 11, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    Wild swings in crude oil prices have kept the GBP/CAD in a roller-coaster ride this Thursday, with the pair adding or shedding 100 pips in minutes, tracking oil moves.

    The commodity flirted with $26.00 a barrel, right before headlines hit the wires, saying that the OPEC is willing to cooperate on an output cut, according to the UAE energy minister. Anyway, the news should be taken carefully, as is all market talk and there are no official announcements behind them.

    GBP/CAD technical perspective

    “The GBP/CAD cross has turned negative late in the US afternoon, as oil bounced with the news, and the 1 hour chart shows a strong downward momentum coming from technical readings as the price approaches 2.0100”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, however, the price is still above a mild bullish 20 SMA, while the Momentum indicator heads slightly higher above its 100 level, and the RSI indicator turned south around 51, leaving an unclear picture for the upcoming sessions”.

    Support levels: 2.0100 2.0060 2.0010. Resistance levels: 2.0185 2.0240 2.0290.
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