GBP/CAD edges higher but gains limited

FXStreet (Córdoba) - The GBP/CADcross has edged slightly higher this Monday, led by a weakening CAD amid a decline in oil prices. GBP/CAD reached a daily peak of 2.0086 before settling in a 30-pip range over the last hours.

The black gold fell for a fourth day in-a-row amid lingering concerns over a worldwide supply glut and after worse-than-expected Chinese trade balance figures released over the weekend, highlighted a diminishing demand.

GBP/CAD technical perspective

“The short term picture is mildly positive, albeit the technical indicators lack upward strength, according to the 1 hour chart that shows that the price holds above its 20 SMA, while the technical indicators stand horizontal above their mid-lines”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the cross is being contained by a bearish 20 SMA a few pips above the current level, while the Momentum indicator has barely advanced above its 100 level and the RSI indicator is resuming its decline around 47, maintaining the risk towards the downside as long as the price remains below 2.0100, the immediate resistance”.

The analyst locates next supports at 2.0000, 1.9960 and 1.9910, while she places resistance levels at 2.0100, 2.0165 and 2.0220.