GBP/CAD hovers near 11-month lows

The GBP/CAD cross plummeted to a fresh 11-month low, hitting 1.8427 before recovering to the current 1.8500 region, overall dragged down by Pound's self weakness, as the UK currency kept plummeting with no clear trigger beyond continued fears over a Brexit.

The Canadian dollar managed to trim most of its intraday losses against the greenback, as the US reported a sharp drawdown in stockpiles during the last week, which sent the price of the commodity back to fresh weekly highs above $35.00 a barrel.

GBP/CAD technical perspective

“The long term bearish trend of the cross remains firm in place, and the short term picture supports some further declines, as in the 1 hour chart, the price remains well below a bearish 20 SMA, whilst the technical indicators present limited bearish strength but remain near oversold readings,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the Momentum indicator heads sharply lower as the RSI indicator consolidates near 34, all of which supports some further declines for this Wednesday.”

Support levels: 1.8485 1.8430 1.8370. Resistance levels: 1.8560 1.8610 1.8660.