GBP/CAD pressured by Brexit fears and firmer oil prices

The GBP/CAD cross plummeted over 200 pips on Monday, as the Pound fell on renewed Brexit fears, whilst the Canadian dollar soared, fueled by a recovery in oil prices, back to the $50.00 a barrel price zone.

The cross fell to 1.8516, marking its lowest level since May 16, and trades now a few pips above it, recording a 1.36% daily loss.

GBP/CAD technical outlook

“The pair maintains a bearish stance both short and long term, as in the 1 hour chart, the price is well below a bearish 20 SMA, whilst the technical indicators have lost their downward strength but hold well below their mid-lines,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators have turned flat within extreme oversold territory, but the 20 SMA has extended its decline below the 200 EMA, far above the current level, supporting some further slides on a break below 1.8478, May 12th daily low and the immediate support.”

Support levels: 1.8475 1.8420 1.8366. Resistance levels: 1.8560 1.8615 1.8680.