GBP/CAD hits 17-month low

The GBP/CAD cross extended its decline to 1.8031, its lowest since level since January 2015, but managed to close slightly higher daily basis around 1.8200, helped by a sharp intraday bounce in the pound.

Meanwhile, the Canadian dollar weakened along with oil prices. WTI attempted to rally, but faltered around $49.00 a barrel, and ended the day flat, as investors turned cautious after profiting from the latest rally to fresh year highs late last week.

GBP/CAD technical view

“The daily chart shows that the technical indicators have turned flat within oversold territory, but are still far from suggesting the pair have reached an interim bottom. Nevertheless, the cross bounced from near the psychological 1.8000 figure, and further advances can be seen during the upcoming days,” said Valeria Bednarik, chief analyst at FXStreet. “Short term, however, the technical outlook is neutral-to-bearish as in the 1 hour chart, the price is a few pips above an horizontal 20 SMA, whilst the technical indicators head nowhere around their mid-lines. In the 4 hours chart, the 20 SMA continues to attract selling interest, now standing around 1.8290, whilst the technical indicators have turned horizontal within bearish territory, all of which maintains the risk towards the downside.”

Support levels: 1.8120 1.8065 1.8000. Resistance levels: 1.8245 1.8300 1.8370.