13 Apr 2016
GBP/CAD clings to 1.8200
The GBP/CAD cross extended its decline, posting a low of 1.8117 early in the US session, after the Bank of Canada left its monetary policy unchanged, with the overnight rate steady at 0.5%.
The accompanying statement showed that growth in Canada during Q1 “appears to have been unexpectedly strong,” leading to a sharp advance of the local currency. Weaker oil prices however, sent the commodity-related currency down during the US afternoon, helping the GBP/CAD cross to trim most of its daily losses.
GBP/CAD technical perspective
“Technically, the 1 hour chart shows that the late recovery was not enough to change the dominant bearish bias, as the price is stuck around a flat 20 SMA, whilst the technical indicators are unable to rally beyond their mid-lines,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price is well below a bearish 20 SMA, whilst the technical indicators remain near oversold levels, but with no clear directional strength, all of which maintains the risk towards the downside.”
Support levels: 1.8175 1.8120 1.8060. Resistance levels: 1.8255 1.8310 1.8380.
The accompanying statement showed that growth in Canada during Q1 “appears to have been unexpectedly strong,” leading to a sharp advance of the local currency. Weaker oil prices however, sent the commodity-related currency down during the US afternoon, helping the GBP/CAD cross to trim most of its daily losses.
GBP/CAD technical perspective
“Technically, the 1 hour chart shows that the late recovery was not enough to change the dominant bearish bias, as the price is stuck around a flat 20 SMA, whilst the technical indicators are unable to rally beyond their mid-lines,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price is well below a bearish 20 SMA, whilst the technical indicators remain near oversold levels, but with no clear directional strength, all of which maintains the risk towards the downside.”
Support levels: 1.8175 1.8120 1.8060. Resistance levels: 1.8255 1.8310 1.8380.