GBP/CAD trims early losses

FXStreet (Córdoba) - The GBP/CAD cross fell to a daily low of 2.0437 and made a U-turn, recovering more than 250 pips as WTI crude oil futures fell briefly below $30.00 a barrel for the first time since December 2003, weighing on the loonie.

Pound’s early weakness on poor manufacturing and industrial production data for November was outpaced by Canadian dollar's softness, as the USD/CAD pair advanced up to 1.4314.

GBP/CAD is currently trading at 2.0600, 0.33% below its opening price.

GBP/CAD technical view

“As for the technical outlook for the cross, the wild intraday moves have distorted the intraday indicators, although the upside seems limited, as in the 1 hour chart, the price is below a bearish 20 SMA, while the technical indicators are turning south below their mid-lines, having corrected extreme oversold readings”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart however, the outlook is neutral with the price now stuck around a horizontal 20 SMA, and the technical indicators having stalled their advances around their mid-lines”.

Support levels: 2.0550 2.0510 2.0460 Resistance levels:2.0630 2.0690 2.0740.