GBP/CAD recovers slightly after steep fall

The GBP/CAD cross plummeted on the back of oil prices' advance, down to a fresh weekly low of 1.8787 this Thursday.

Tepid growth figures in the UK for the first quarter of this 2016, put the Pound under pressure against all of its major rivals, pushing GBP/CAD to the downside. The pair however, managed to regain the 1.90 mark and it was last trading at 1.9015, 0.6% lower on the day.

GBP/CAD technical perspective

“The short term picture favors some additional declines, as the price is now below a bearish 20 SMA, whilst the technical indicators hold below their mid-lines, with modest bearish slopes,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the 20 SMA is now horizontal around 1.9125, while the RSI indicator heads south around 45 and the Momentum indicator turned slightly higher below the 100 level, all of which maintains the risk towards the downside, although a break below the 1.9000 level is required to confirm further slides for this Friday.”  

Support levels: 1.9000 1.8940 1.8880. Resistance levels: 1.9070 1.9125 1.9180.