GBP/CAD snaps 5-day winning streak

The GBP/CAD cross plummeted after extending its rally up to 1.7414 at the beginning of the day, as adding to a weakening Pound, the Canadian dollar soared after the BoC decided to keep its benchmark rate at 0.5%, a bit surprising considering easing has become the new normal among Central Banks.

The CAD hold to gains, despite oil prices gave back their latest gains following the EIA report on US stockpiles fell by less-than-expected. At time of writing, GBP/CAD is trading at 1.7055, recording a 1.25% loss on the day.

GBP/CAD technical perspective

“The cross topped at a sharply bearish 20 DMA, suggesting that the latest recovery may have been corrective. Shorter term, the 1 hour chart shows that the technical indicators keep heading lower, despite being in oversold territory, whilst the 20 SMA has turned sharply lower well above the current level,” said Valeria Bednarik, chief analyst FXStreet. “In the 4 hours chart, the price is now below its 20 SMA, while the technical indicators have lost downward strength around their mid-lines. An immediate support comes at 1.6971, July 8th high, with a break below it required to confirm further slides for this Thursday.”

Support levels: 1.6970 1.6925 1.6880. Resistance levels: 1.7090 1.7160 1.7210.