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GBP/CAD trims half of daily losses

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 13, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Córdoba) - The GBP/CAD cross plunged during the first half of the day as the Pound shed nearly 200 pips following the release of weaker-than-expected UK inflation data. The cross fell down to 1.9729 a fresh 3-month low, but recovered some ground in the US afternoon following a sharp decline in oil prices.

    WTI crude oil futures fell for a second day in-a-row as the International Energy Agency released a forecast saying that the market will remain oversupplied through all 2016.

    GBP/CAD technical perspective

    “As for the technical picture, the 1 hour chart shows that the 20 SMA presents a bearish slope around 1.9910, whilst the technical indicators have lost upward potential after bouncing from oversold levels, and remain well below their mid-lines”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the 20 SMA caps the upside around 1.9875 whilst the Momentum indicator has turned south around its mid-line and the RSI indicator hovers around 46, maintaining the pressure towards the downside”.

    Support levels: 1.9830 1.9780 1.9730. Resistance levels: 1.9879 1.9910 1.9950.
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