GBP/CAD hits fresh 32-month lows

GBP/CAD reached again a 32-month low of 1.6693 on Wednesday  following a sharp decline of the Pound across the board while the Loonie showed some resilience with crude oil prices recovering some lost ground.

Looking at 1.6400?

From the lows, the pair attempted to rise but it failed at 1.6900 and retreated back to the lows. The pair ended the day hovering around 1.6750. Technical indicators in several time frames are showing extreme oversold readings but the bearish momentum remains strong, in line with the dominant trend, suggesting that a clear break of 1.6700 would open the doors to more losses.

The next medium-term support is seen around the 1.64 handle. In the short-term the Pound needs to rise above 1.6900 only to remove bearish pressure. A correction is due but so far, only oversold readings favors that move.